Applications open for three zone types: standard, global and inter-regional
Non-metropolitan governments eligible; applications accepted Nov. 2–6
57 zones designated since 2019; 63 laws revised following pilot programs
The government is soliciting candidate projects for next year's regulatory-free zones, aiming to lower regulatory barriers for new technologies and industries and identify fresh growth engines for regional economies.
The Ministry of SMEs and Startups said Sunday it is accepting applications from non-metropolitan local governments for new designations across three categories: standard regulatory-free zones, global innovation regulatory-free zones and inter-regional regulatory-free zones.
About 11 zones in total are expected to be selected — roughly four each in the standard and global categories, and about three in the inter-regional category.
Regulatory-free zones function as a regional regulatory sandbox, granting temporary regulatory exemptions so that new technologies and services can be piloted in a given area. Local governments submit a zone plan, which is reviewed in consultation with the relevant regulatory ministries. Participating businesses then receive regulatory exemptions, and if safety and other requirements are confirmed during the pilot, the related regulations are revised accordingly.
Global zones focus on developing new advanced products and entering overseas markets, supporting domestic and international pilots, global certification, international joint research and development, and commercialization. Inter-regional zones require two or more metropolitan local governments to jointly plan and operate a zone, pursuing value-chain-level pilots that combine multiple new products and services.
The ministry will evaluate candidate projects primarily on their broader impact — including how tangibly citizens feel the effects of regulatory reform — their contribution to regional economic development, and the feasibility of regulatory improvement and commercialization after the pilot phase. Global zone candidates will also be assessed on the need for overseas pilots and certification, while inter-regional candidates will be evaluated on cross-regional project coordination and the potential for regulatory reform effects to spread across a wider area.
Since the regulatory-free zone system was introduced in 2019, a total of 57 zones have been designated. Of the 77 laws for which revision was requested after completed pilots, 63 have been amended. The government has used the zones not only to grant regulatory exemptions but also to support pilot R&D and commercialization tied to regional strategic industries, making them a tool for nurturing new regional industries.
This year, seven new regulatory-free zones were designated in emerging sectors including climate technology, biotech and mobility. Standard zone designations went to four areas: a hybrid hydrogen energy zone in South Gyeongsang Province, an industrial hemp zone in North Gyeongsang Province, a recycled carbon fuel zone in Ulsan, and a next-generation veterinary medicine zone in North Jeolla Province. Three global zones were also named — two in North Gyeongsang Province covering eco-friendly vessels and green biotech, and one in South Jeolla Province for renewable energy agricultural machinery. A total of 13 regulatory exemptions were granted across these zones.
Applications are open to non-metropolitan local governments. Standard and global zones may be applied for by non-metropolitan wide-area and basic local governments, as well as special autonomous local governments. Inter-regional zones require a consortium of two or more non-metropolitan wide-area local governments.
The application window runs from Nov. 2 to Nov. 6. Selected candidate projects will receive consulting support from regulatory and technology experts, along with inter-ministerial consultations, to help refine their zone plans.
The minister of SMEs and Startups will make final designations for new zones in the first half of next year, following deliberation and approval by the Regulatory-Free Zone Regulatory Exemption Review Committee and the Regulatory-Free Zone Committee, which is chaired by the prime minister.
boo@heraldcorp.com
