Busan Jinhae Free Economic Zone Authority Launches Core Regulation Response Task Force to Eliminate Unreasonable Regulations

Report Meeting on Regulatory Improvement Progress
11 Key Regulatory Reform Tasks Selected, Including Easing of Height Restrictions in Port Hinterland Complexes

The Busan-Jinhae Free Economic Zone Authority (Commissioner Park Sungho, hereinafter referred to as the Authority) held a “Regulatory Improvement Progress Report Meeting” at the Authority’s main conference room on the 8th, where it selected 11 key regulatory improvement tasks among the regulations and difficulties raised by companies on site and launched a “Key Regulation Response Task Force (TF)” to address them.

Busanjin-Hae Economic Free Zone Authority is holding a regulatory innovation report meeting for the first half of the year. Provided by Busanjin-Hae Economic Free Zone Authority

The 11 key tasks are divided into the “Logistics & Industry Sector” and the “Development & Corporate Support Sector.”

The Logistics & Industry Sector includes seven tasks: ▲Taxation on raw materials for coffee manufacturing and processing in port hinterland complexes ▲Extension of rent reduction periods within port hinterland complexes ▲Easing of height restrictions in Type 1 port hinterland complexes ▲Expansion of tax reduction targets for logistics businesses within the free economic zone ▲Allowing logistics + manufacturing within port hinterland complexes ▲Addition of logistics businesses eligible for local government subsidies ▲Granting correction periods upon termination of occupancy contracts in free trade zones.

The Development & Corporate Support Sector includes four tasks: ▲Establishing legal grounds for recovering reduced rent ▲Improving methods for amending development plans for new port districts ▲Amending the Busan City Delegation Ordinance (delegation of district unit planning authority) ▲Improving regulations on methods of supplying developed land.

This TF aims to proactively identify the difficulties faced by resident companies and investors within the free economic zone and to achieve practical institutional improvements through close cooperation with the central government and related organizations. The Authority, in particular, seeks to improve field-oriented regulations to create a business-friendly environment and to leap forward as a globally competitive economic zone with strong investment appeal.

The Authority, in cooperation with Busan Port Authority, resolved the height restriction issue for resident company Mitsui Soko Korea in March, attracting an additional investment of 48.2 billion KRW, and achieved the relaxation of area restrictions for leases in the free trade zone.

Commissioner Park Sungho stated, “Bold and swift regulatory innovation is essential for the Busan-Jinhae Free Economic Zone to become a globally competitive economic zone,” adding, “With the launch of this TF, we will focus our administrative efforts on listening to voices from the field and collaborating with related organizations to achieve effective improvements.”

Going forward, the Authority plans to continue visualizing regulatory improvement outcomes through ongoing monitoring and feedback centered on the Regulatory Innovation TF, thereby creating a virtuous cycle of investment promotion and regional economic growth.