Ministry of SMEs and Startups Holds Launch Ceremony for Newly Designated Regulatory Free Zones

Launch of 'Regulation Resolution Support Team' for Systematic Management of New Special Zones

On the 10th, the Ministry of SMEs and Startups held the launch ceremony for the 9th Regulatory Free Zones at Lotte Hotel in Seoul.

The Regulatory Free Zone system allows for the suspension of regulations that hinder the development of new technologies, permitting free testing within designated zones in non-metropolitan local governments. Through this, non-metropolitan companies are supported in establishing standards for new technologies and industries and in securing domestic and international markets.

Since the introduction of the Regulatory Free Zone system in 2019, 34 zones have been designated nationwide over eight rounds in the past five years. Through testing, 40 regulatory laws have been revised, resulting in attracting investments worth approximately 15 trillion KRW to the regions and creating over 6,800 jobs.

This year, following the review and resolution by the Regulatory Free Zone Committee chaired by the Prime Minister in April, the following zones were designated: ▲ Gyeongbuk Cell Cultured Food Zone ▲ Daegu Inno-Dental Zone ▲ Gyeongnam Fisheries Byproduct Recycling Zone ▲ Gyeongnam Daily Life Hydrogen Mobility Zone ▲ Chungnam Green Ammonia Utilization Hydrogen Power Generation Zone.

At the launch ceremony, ombudsmen for each zone were appointed to inspect the progress of demonstration projects and propose improvement directions. They will closely support the resolution of regulations in each zone until the end of the designation period.

Additionally, to help the Regulatory Free Zones grow into regional innovation clusters, each local government introduced zone projects to experts in the field, related associations, large corporations, and mid-sized companies, discussing new demonstration project ideas and strategies for creating region-centered clusters around the zones.

O Gi-ung, Vice Minister of the Ministry of SMEs and Startups, emphasized, “For the Regulatory Free Zones to establish themselves as regional innovation clusters, active participation from companies and institutions that are not afraid of innovation and challenge is crucial.” He added, “We will actively cooperate with local governments and regulatory authorities to ensure that the Regulatory Free Zones fully serve as cradles of regional innovation where new products and services can be freely tested.”