High-tech plants to be expanded

A change in regulations, now reviewed by the government, for the construction of high-tech plants in the Seoul metropolitan areas is expected to benefit Samsung Electronics Co. and Ssangyong Motor Co. by allowing them to expand their factories. The Ministry of Commerce, Industry and Energy said yesterday it would let high-tech firms double the size of manufacturing facilities in regions that are overseen to control industrial growth in Seoul metropolitan areas. The amendment in the regulations would take effect in July if it passes the National Assembly. Now firms that have plants in the regions can increase their facilities by 25 to 50 percent. Samsung Electronics aims to add 168,595 square meters (41.6 acres) of facilities in Giheung, while Ssangyong Motor plans to add 198,000 square meters of facilities in Pyeongtaek. However, the two expansion schemes were bounded by the regulations, the ministry said. Samsung has set aside 14.4 trillion won ($11.96 billion) and Ssangyong 1.4 trillion won for the projects. “Among 45,000 registered plants in the industrial-growth-controlled areas, the ministry is considering approving the expansion of high-tech industry that contributes much to the national economy,” said Yun Young-seon, a ministry official. The ministry also plans to exclude office and storage spaces from total factory space, which the ministry said would allow companies with factories in the Seoul metropolitan area to increase their factory space by 10 to 30 percent. The relaxing of the regulation seems to address the recent controversy surrounding the government’s decision to give a green light to foreign-invested LG. Philips LCD Co.’s expansion plans in Paju. Clashes between government ministries are anticipated as the Ministry of Construction and Transportation and the Ministry of Environment have opposed such expansion plans to prevent industrial concentration from rising further. Local governments are expected to object to the proposal for balanced development between Seoul metropolitan areas and other provinces. by Hoh Kui-seek