From now on, companies located in industrial complexes will be able to lease industrial land to other tenant companies. Additionally, apartment-style farms (vertical farms) will be allowed to be established within industrial complexes.
The Ministry of Trade, Industry and Energy announced on the 23rd that it has finalized the amendment bill to the "Act on the Activation of Industrial Clusters and Factory Establishment (Industrial Cluster Act)" as a government proposal at the Cabinet meeting and plans to submit it to the National Assembly.
This amendment was prepared as a follow-up measure to requests from local governments such as Ulsan and the corporate investment project activation plan announced last November. The amendment allows tenant companies in industrial complexes (lessors) to temporarily lease industrial land for use as material storage yards or parking lots when other tenant companies (lessees) are establishing or expanding large-scale factories. Furthermore, private developers who directly develop industrial complexes (actual demand industrial complex development project implementers) can lease the industrial land they have developed to companies engaged in advanced strategic technology or green technology research and development with the approval of the industrial complex designation authority.
Previously, companies in industrial complexes could lease industrial land and factories together only after factory registration, but leasing only industrial land was not permitted. The government expects that once this amendment to improve the leasing regulations of industrial land within industrial complexes is enacted after approval by the National Assembly, investment by tenant companies will become more active.
In addition, on the same day, the Ministry of Trade, Industry and Energy announced a legislative notice for the amendment of the enforcement decree of the Industrial Cluster Act to allow vertical farms to enter industrial complexes, as a follow-up to the Ulsan regional public discussion held in February. Vertical farming refers to an agricultural method of cultivating crops in urban high-rise buildings equipped with controlled temperature, humidity, light, and agricultural water.
The Ministry stated, "We will continue to identify and improve location regulations to create industrial complexes with quality jobs and attractive to young people through large-scale corporate investments, thereby revitalizing the local economy."
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