Ministry of SMEs and Startups Launches New Selection for 'Global Innovation Zones and Regulatory Free Zones'

The Ministry of SMEs and Startups announced on the 30th that it will publicize plans to select ‘Global Innovation Special Zones’ and ‘Regulatory Free Special Zones’ candidates for new designations.

The ‘Regulatory Free Special Zones,’ which foster regional innovation projects through regulatory exemptions, have designated a total of 39 zones since the system was introduced in 2019, establishing themselves as Korea’s representative regulatory free zones.

Additionally, as part of the national agenda, Busan, Gangwon, Chungbuk, and Jeonnam were designated and announced as ‘Global Innovation Special Zones’ last May to promote negative demonstration exemptions and regional global expansion.

The new selection of ‘Global Innovation Special Zones’ and ‘Regulatory Free Special Zones’ expands eligibility to include capable local governments to secure the competitiveness of the special zones.

To provide fair business participation opportunities for innovation entities such as local universities, research institutes, and companies, local governments will publicly recruit special zone operators to conduct demonstration projects, emphasizing fairness in the selection and support methods of the special zones.

In the case of ‘Global Innovation Special Zones,’ three candidate regions will be selected as announced in the ‘2024 Economic Policy Direction’ on January 4.

For ‘Regulatory Free Special Zones,’ about six candidate zones will be selected, and in particular, the designation of ‘Super-wide-area Regulatory Free Special Zones’ will be promoted to create convergence and synergy among industries through cooperation between local governments and infrastructure linkage.

While local governments can apply for Regulatory Free Special Zones at any time, this candidate zone selection is characterized by supporting detailed planning costs to establish substantial special zone plans.

The selected ‘Global Innovation Special Zone’ candidate regions and ‘Regulatory Free Special Zone’ candidate zones will undergo review by subcommittees and deliberation committees, followed by examination and resolution by the Special Zone Committee, and will be finally designated by the Minister of SMEs and Startups in the first half of 2025 according to relevant laws.

Kim Hong-joo, head of the Special Zone Innovation Planning Group at the Ministry of SMEs and Startups, stated, “Securing the strategic nature and sustainability of the special zones is of utmost importance,” adding, “We will comprehensively evaluate the linkage with regional and government industrial policies, the potential for development into innovation clusters, and the capabilities of local governments and special zone operators.”