Ulsan Free Economic Zone Authority and Ministry of SMEs and Startups Discuss Cooperation Between Free Economic Zones and Regulatory Free Zones

Visit of Lee Gweehyun, Head of the Special Zone Innovation Planning Division at the Ministry of SMEs and Startups, to the Ulsan Free Economic Zone Authority on the 16th

Ulsan Free Economic Zone Authority and the Ministry of SMEs and Startups are joining forces to ensure the ripple effects of linking free economic zones and regulatory free zones take root in the local area.

The Ulsan Free Economic Zone Authority will hold a meeting for cooperation between free economic zones and regulatory free zones at 2 p.m. on the 3rd floor main conference room of the Authority on the 16th, with around 10 participants, including Lee Kyungsik, Head of the Ulsan Free Economic Zone Authority, and Lee Gweehyun, Head of the Special Zone Innovation Planning Division at the Ministry of SMEs and Startups.

A free economic zone refers to a special economic area that maximizes the autonomy of business activities by easing various regulations and creating favorable living conditions, aiming to attract foreign-invested companies and reshoring domestic companies.

A regulatory free zone is a system that relaxes a package of regulations related to new businesses faced by local regions and companies to promote innovative growth and balanced development in the area.

The Ministry of Trade, Industry and Energy operates the free economic zones, while the Ministry of SMEs and Startups manages the regulatory free zones.

Since last year, there has been a growing need for collaboration to break down barriers between ministries and create a system that provides regulatory exceptions and commercialization support for new industry companies in one place.

Additionally, as the Free Economic Zone Act has been revised to allow the head of a free economic zone authority to apply for regulatory free zone designation?previously a right granted only to city or provincial governors?the possibility for resident companies to participate has increased significantly.

Accordingly, this meeting will proceed with explanations of each institution's projects and discussions on specific ways to link and cooperate, aiming to build consensus on the necessity of collaboration between the zones for achieving regional innovative growth.

The Ulsan Free Economic Zone Authority plans to discuss with the Ministry of SMEs and Startups ways to expand opportunities for resident companies to participate as regulatory free zone operators and to pursue innovative growth in collaboration with leading (anchor) companies such as large corporations and public institutions.

Regarding today's meeting, Lee Gweehyun, Head of the Special Zone Innovation Planning Division, is scheduled to visit the demonstration site for ammonia supply (bunkering) in the eco-friendly (green) energy port district within the Ulsan Free Economic Zone, which Ulsan City has applied to designate as a regulatory free zone this year.

Lee Kyungsik, Head of the Ulsan Free Economic Zone Authority, said, "On December last year, we launched a joint promotion team consisting of 14 industry-academia-research institutions and companies, the first among the nine free economic zone authorities nationwide, to promote cooperation between free economic zones and regulatory free zones," and added, "We will continue to discover and promote collaborative projects between the zones to contribute to regional innovative growth."

The Ulsan Free Economic Zone Authority also plans to support and survey demand so that resident companies can participate in the 'Public-Private Partnership Open Innovation Project' currently being promoted by the Ministry of SMEs and Startups.

In particular, this project provides opportunities for anchor institutions and startups to grow together, and resident companies in the free economic zone receive extra points when applying, increasing their chances of selection and further expanding opportunities for innovative growth.