Development restrictions will be lifted in Seoul’s metro area
Published: 31 Oct. 2008, 03:56
Additionally, regulations that limited the development of tourism businesses such as resorts and shopping malls in environmental protection zones will be eased.
The government announced yesterday its plan to turn the metropolitan area into a center of high-tech industry through better land utilization.
However, the government said the zoning system itself will remain in place. That system, which seeks to control overpopulation, manage growth and protect the environment will be unchanged.
The government said the purpose of easing restrictions is to stimulate the slumping economy by promoting investment that will create jobs. An earlier study by the Federation of Korean Industries, a business advocacy organization, showed that once development regulations in the metropolitan area are lifted, new investment will likely amount to at least 4 trillion won ($3.2 billion).
Deregulation in the development of the heavily industrialized Seoul metropolitan area is a major move by the new Lee Myung-bak administration.
Previous administrations have regulated development in the capital and neighboring regions in an effort to disperse development to other areas. Over the years, entrepreneurs have urged the government to ease the regulations that they said were hurting business.
Until now, the government has resisted, particularly during the Roh Moo-hyun administration. Business-friendly Lee has turned everything around as was expected when he won the presidency.
The biggest beneficiaries from the easing of regulations are likely to be the 383 conglomerates that have factories in the region.
Regulations that had restricted factory construction in 89 existing industrial complexes will be lifted for future complexes as well.
Currently only small- and medium-sized companies, whose equity is below 8 billion won ($6.4 million) or have less than 300 employees, are permitted to build or expand factories in the metropolitan area.
Additionally, only 14 high-tech industries - such as semiconductors, electronic cards and wireless telecommunications - are permitted to build or expand factories within the industrial complexes located in population control zones.
With the reforms, conglomerates and other high-tech industries will be permitted to expand their factories within the growth-management and population-control zones. Current development restrictions prohibiting the building of factories in environmental protection zones will remain in place.
By Lee Ho-jeong Staff Reporter [ojlee82@joongang.co.kr]
with the Korea JoongAng Daily
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