"Laundry Services Banned in Dyeing Complexes"... KCCI Proposes Improvements for 55 Manufacturing Site Regulations

The Korea Chamber of Commerce and Industry (KCCI) announced on August 3 that it had submitted a "Proposal for Rationalizing Manufacturing Site Regulations" to the government and the National Assembly. This proposal outlines 55 difficulties, including restrictions on moving into industrial complexes, environmental permits, and certification procedures, and calls for improvements to the uniform regulations imposed on manufacturing sites.

This proposal is part of the KCCI’s ongoing "New Growth Series" and presents specific cases illustrating how on-site regulations are disconnected from actual industrial changes. Notable examples include the current regulation that prohibits laundry service providers from moving into dyeing industrial complexes, the efficiency certification structure that requires large transformers to be physically transported to testing agencies, the requirement for formal environmental permits even for test facilities, the prohibition on establishing childcare centers within factory premises, and inconsistencies in the installation height standards for fire safety equipment.

The KCCI pointed out the regulation that prevents laundry factories from moving into dyeing industrial complexes, explaining that although laundry services are closely related to dyeing and are essentially essential industries, they are blocked from entry solely because they are classified as "service industries."

Transformer manufacturing companies reported the burden of having to move 8-ton equipment directly to external agencies for efficiency testing, which results in significant safety risks and logistics costs. The KCCI proposed switching to a system that allows on-site testing by accredited certification bodies using the company’s own testing facilities.

The requirement to obtain formal permits even for test facilities installed for research and development was also highlighted as a problem. The KCCI stated, "It is excessive to require documents such as annual maintenance plans for facilities that will be dismantled in three to six months," and called for regulatory relaxation specifically for test facilities.

The standards for establishing workplace childcare centers also came under scrutiny. Under the Infant and Child Care Act, a childcare center must be located at least 50 meters from a factory boundary. However, there have been cases where land more than 100 meters away from actual hazardous facilities still fails to meet the criteria, making it impossible to build a childcare center. The KCCI recommended changing the standard from "factory boundary" to "outer wall of hazardous facilities."

Additionally, the KCCI pointed out that differing installation height standards for water supply connection pipes and manual control panels are causing repeated confusion on site. The KCCI argued that these standards should be unified, considering the increasing prevalence of integrated equipment.

The KCCI emphasized, "As AI transformation and the emergence of new industries accelerate, outdated regulations and unrealistic permitting systems in manufacturing sites must be made more flexible," and added, "Swift improvements to legal and institutional frameworks are needed to prevent on-site difficulties from leading directly to reduced productivity and investment contraction."

Meanwhile, the KCCI is continuously releasing the "New Growth" series, including this report, covering seven topics: private regulatory sandboxes, export structure, regulatory reform direction, new industry regulations, support for small and medium-sized enterprises, and the effects of Korea-Japan tourism.