4th Anniversary of Regulatory Free Zone in Pohang City, a Leading Role Model for Regional Innovation Growth

Establishment of Secondary Battery Integrated Management Center

Leap to Global Battery Hub City

Attracting 2.8 Trillion KRW in Corporate Investment

[Asia Economy Yeongnam Reporting Headquarters Reporter Dongguk Lee] Since Pohang City was designated as a next-generation battery recycling regulatory free zone in 2019, it has been recognized for its achievements over the past four years. On the 31st, at the 2023 Ministry of SMEs and Startups major issues briefing held at the Sejong Government Complex, related achievements were shared to mark the 4th anniversary of the regulatory free zone.

At the briefing, titled "Four Years of Regulatory Free Zones and New Challenges," Baek Un-man, Director of the Ministry of SMEs and Startups, presented a comprehensive report on the four-year achievements since the introduction of the regulatory free zones. Vice Mayor Kim Nam-il shared the outstanding achievements of the local government and presented the future development direction of Pohang City.

Kim Nam-il, Vice Mayor of Pohang City, is presenting the achievements of Pohang City's Regulatory Free Zone over four years at the 2023 Major Issues Briefing held at the Ministry of SMEs and Startups Sejong Government Complex on the 31st.

Vice Mayor Kim said, “Since the designation of the next-generation battery recycling regulatory free zone in 2019, we have revised 10 related laws and regulations, established the Secondary Battery Comprehensive Management Center to support demonstration and commercialization of used batteries, attracted corporate investments worth 2.8 trillion KRW, and created 1,700 new jobs.” He added, “These achievements are the result of combined efforts by the central government, Gyeongbuk Province, and Pohang City for Korea’s innovative growth and regional balanced development.”

In 2019, when the pace of technological advancement in batteries outpaced legislation, making industrialization of used batteries difficult, Pohang City, together with Gyeongbuk Province, proactively applied for and was designated as the “Next-Generation Battery Recycling Regulatory Free Zone” to foster green industry new technologies by granting regulatory exemptions demanded by businesses in the field.

Through the designation of the free zone, Pohang attracted investments from leading companies such as POSCO Chemical, EcoPro, and GS Construction, as well as small and medium enterprises like SoluM, Mirae Ceratech, and Haedong Engineering, establishing a full-cycle industrial ecosystem producing everything from materials to components.

Additionally, EcoPro established the Pohang Campus in the Yeongilman Industrial Complex, where core production facilities of its group companies including BM, EM, Materials, Innovation, C&G, and AP are located, producing everything from recycling to precursors and cathode finished products.

Alongside this, Pohang secured the Ministry of Environment’s used battery resource circulation cluster and inline automatic evaluation center projects, scheduled for phased construction starting in 2024. This is expected to serve as a national control tower linking the entire process from advanced secondary battery technology development to product manufacturing.

Moreover, Pohang was selected for the Ministry of Trade, Industry and Energy’s project to establish a commercialization base for high-safety, mass-produced lithium iron phosphate (LFP) batteries. By adding the LFP battery industry foundation to the currently operating Secondary Battery Comprehensive Management Center, Pohang is reemerging as a leading secondary battery city beyond its identity as a steel city.

Vice Mayor Kim Nam-il stated, “Pohang City has greatly contributed to creating new regional innovations and strengthening competitiveness in the secondary battery industry through the regulatory free zone.” He added, “Based on the diverse infrastructure in the secondary battery field within the region, we will actively strive to attract large-scale national projects such as the National Advanced Strategic Industry Specialized Complex to enhance Korea’s global capabilities in the secondary battery industry.”

Pohang plans to actively attract innovation free zones where local companies can scale up, such as the Global Innovation Free Zone, National Advanced Strategic Industry Specialized Complex, and Opportunity Development Free Zone, preparing a dedicated battery industrial complex.

Along with this, leveraging abundant human resources and infrastructure from four universities including POSTECH and two Meister high schools, Pohang will promote a talent development platform that produces customized talent for demand companies. By connecting world-class research and development infrastructure, abundant human resources, and leading companies such as EcoPro and POSCO Chemical, Pohang aims to enhance new technology R&D and the national competitiveness of the secondary battery industry. Additionally, the establishment of the Secondary Battery Industry Promotion Institute will be pursued for policy planning and execution.