Jeju Space Industry Cluster and Seoul Ferris Wheel Project Accelerated

Government to Support Rapid Activation of 18 Companies and Investments Worth Up to 47 Trillion Won
‘Plan to Support Rapid Activation of Corporate and Regional Investments’ Confirmed at Emergency Economic Ministers' Meeting

The government has decided to swiftly establish a space industry cluster in Jeju Island by removing regulatory obstacles. The 'Seoul Observation Wheel' project, promoted as a landmark project with a view of Seoul, will have its administrative procedure period significantly shortened to support early construction. Regulations for cosmetics companies that find it difficult to settle in industrial complexes will also be improved.

On the 28th, the government held an emergency economic ministers' meeting chaired by Choi Sang-mok, Deputy Prime Minister and Minister of Economy and Finance, and finalized and announced the 'Rapid Activation Plan for Corporate Regional Investment' with these contents. This measure is the second investment activation plan following the 'Support Plan for Corporate Investment Project Activation through Customized Resolution of Difficulties' announced on November 8 last year.

Amid concerns about investment slowdown due to high interest rates and project financing (PF) uncertainties, the focus was on supporting smooth promotion of corporate and regional-led investments. The government decided to improve regulations and administrative procedures that hinder investment so that 18 corporate investment projects worth up to approximately 47 trillion won can be rapidly activated.

Utilizing the Opportunity Development Special Zone System... Establishing a Space Industry Cluster in Jeju Island

First, regulations that make investment difficult will be improved. To allow a 'space industry cluster' to be established at Jeju Techno Campus (on the site of Tamna University), the Opportunity Development Special Zone system will be utilized to exceptionally permit the creation of an industrial complex. According to the existing industrial site supply and demand plan, if the development site area exceeds 10 times the average annual demand area, it is institutionally impossible to designate it as a new industrial complex. Jeju Island's development site area is 340,000㎡, exceeding 10 times the average annual demand area (10,000㎡). However, the government decided to apply regulatory exceptions to attract large-scale investment in Jeju Island.

A Ministry of Economy and Finance official explained, "There are companies willing to enter if Jeju Island is designated as an industrial complex," adding, "The investment scale is about 100 billion won, so there is an investment effect from the industrial complex creation." By utilizing the 'Opportunity Development Special Zone' system, which can use investment incentives such as tax benefits or regulatory relaxation for large-scale investment attraction, and applying it as an exception to the industrial site supply and demand plan, the creation of the industrial complex will be permitted. The Minister of Trade, Industry and Energy will apply to the Minister of Land, Infrastructure and Transport for the exception, and the Ministry of Land, Infrastructure and Transport will reflect it, thereby removing the regulatory blockage.

Regulations restricting industries for companies entering industrial complexes will be improved to allow cosmetics company C to build a factory in Cheongju Central Valley. Currently, the area where company C intends to settle completely restricts the emission of air pollutants, making it impossible for a cosmetics factory that emits air pollutants to enter. The government plans to add chemical product manufacturing to the list of industries allowed to enter industrial complexes and allow the construction of factories within the complex on the condition that emission reduction facilities are installed. The investment scale for this is estimated to be about 100 billion won.

Significant Reduction in Administrative Procedures... Supporting Early Construction of the 'Seoul Observation Wheel'

The government will reduce slow administrative procedures to shorten the investment execution period. The administrative procedure period for the Seoul Observation Wheel project, promoted as a Seoul cityscape landmark project, will be shortened by more than 9 months to support early construction. This observation wheel, with a diameter of 180m and a capacity of 1,440 passengers simultaneously, was proposed by company S as a private investment project to build the world's first 'Twin Wheel' type observation wheel. However, it was difficult to proceed quickly because administrative procedures such as private investment eligibility investigations were expected to take more than 36 months. The government plans to shorten the administrative procedure period to about 27 months so that early construction can begin in the first half of 2026. The project investment scale is expected to be about 11 trillion won.

In Hongseong Naepo New Town, a general hospital will be built quickly. The related administrative review period will be shortened from 3 months to within 40 days. The M Foundation is promoting the construction of a general hospital in Naepo New Town, which currently lacks one, but there were concerns about project delays due to feasibility studies and investment reviews. Feasibility studies take about 6 months or more for projects with a total cost of 50 billion won or more, and investment reviews take about 3 months for projects with a total cost of 30 billion won or more. A Ministry of Economy and Finance official said, "There is no general hospital in this area, so rapid construction is necessary," adding, "By utilizing investment period reduction systems under the Local Finance Act, feasibility studies can be exempted when non-disclosure and other approvals are made, and such systems can be used."

Furthermore, efforts will be made to establish investment infrastructure such as power grids necessary for timely corporate investment execution. Additional installation of dedicated power lines for companies will ensure timely power supply within the Gwangyang Bay secondary battery industrial complex, and local government permits for early construction of transmission lines in the Saemangeum and Yeongil Bay industrial complexes will be expedited.