Ruling party, government move to pass 'mega special zone' law this year

The Democratic Party of Korea and the government have launched efforts to enact a so-called "mega special zone law" aimed at fostering advanced industries outside the Greater Seoul area. The two sides plan to apply sweeping regulatory exemptions and corporate support measures within designated mega special zones to create regional growth hubs.

The Democratic Party's Mega Growth Special Committee held its first consultation with the government Friday at the National Assembly Members' Office Building, discussing plans to enact a special law governing the designation and operation of mega special zones. Party representatives included Special Committee Chairman and Democratic Party leader Kim Min-seok, Senior Vice Chairman Lee Gwang-jae, Standing Vice Chairman Kwon Chil-seung, Vice Chairwoman Lee Eon-ju and National Assembly Political Affairs Committee Chairman Yoo Dong-su. From the government, Office for Government Policy Coordination Minister Im Gi-geun, Ministry of Trade, Industry and Energy Vice Minister Moon Sin-hak and Lee Byung-hun, acting chairman of the Presidential Committee on Balanced National Development, attended.

Kim cited "governance, granularity and private-sector receptiveness" as reasons why a party-driven implementation framework was needed alongside the government-led mega project. "The five axes — the central government, local governments, the National Assembly, local councils and civil society in the relevant regions — must all move together," he said. "Realistically, only the party can serve as the coordinator that keeps all five moving in sync."

Kim also outlined plans to designate the combined South Jeolla Province-Gwangju region as a test bed for mega growth. He said the party would establish two separate task forces — one focused on a 30-minute commuter zone linking the two areas and another on a cultural infrastructure deal — to develop concrete measures for improving living conditions, including transportation, housing and cultural amenities.

"The government draws the big picture, but in practice there are many small gears that need to turn," Kim said. "Ultimately, within five to ten years, improvements in cultural quality of life and the medical environment in those regions must move forward together."

The ruling party and government agreed to push for passage of the mega special zone law within the year as the institutional foundation for the mega growth strategy. According to Committee Chairman Yoo, the special law will cover the designation and operation of mega special zones, regulatory exemptions, renewable energy special pilot complexes, corporate support and supplementary measures. It will also allow multi-provincial coalitions to be included within the scope of designated zones.

Labor deregulation provisions, however, are expected to be a central flashpoint in the legislative process. Proposals under review include a white-collar exemption targeting research and development personnel, a flexible working-hours system and easing of regulations under the fixed-term employment act — measures that have already drawn dissent within the party.

Standing Vice Chairman Kwon Chil-seung acknowledged the divisions. "We are well aware that there are differing views within the party on labor-related exemptions, and that concerns have been raised by labor groups," he said. "A social grand bargain process is needed to gather the views of all stakeholders in order to harmonize regulatory reform aimed at boosting corporate competitiveness with the protection of workers' rights."

Kwon added that the party would work to build broad consensus in the National Assembly. "As we have committed to holding regular joint sessions at the level of the ruling and opposition parties' policy committees, we will build wide support in the Assembly through thorough explanation," he said.

Vice Chairwoman Lee Eon-ju said the relocation of public institutions alone was insufficient to address regional depopulation, and called for attracting "anchor companies" to the regions. "Local economies can only develop if anchor companies can be brought in," she said, adding that regulations covering healthcare, education and amenities must also be eased to draw workers as well as businesses. She described the mega special zone law as "a procedural and foundational law" designed to help local governments work with residents to attract anchor companies and build major industries in their regions.

The government also pledged to throw its full weight behind passage of the legislation this year. "Through the mega special zones, we will provide sweeping regulatory exemptions to investing companies in connection with the five-pole, three-special growth engine initiative, and create regional growth hubs fully equipped with ecosystems covering housing, transportation, education, talent, childcare, healthcare, culture, venture businesses and small and medium-sized enterprises," Office for Government Policy Coordination Minister Im said. "We will mount an all-out effort to enact the mega special zone special law within the year."