Seoul: South Korea has announced plans to ease regulations, including administrative procedures, to bolster the nation's three major projects focused on semiconductors and artificial intelligence (AI) facilities, as reported by the finance ministry on Thursday. Finance Minister Koo Yun-cheol introduced the initiative during a meeting with ministers involved in economic affairs, with the government projecting the measures to attract a total investment of 4.2 trillion won (US$2.96 billion).
According to Yonhap News Agency, the government formulated these measures to address investment-related obstacles, mainly targeting projects that are poised to advance but are currently hindered by regulatory barriers. The finance ministry emphasized the necessity of deregulation to facilitate the smooth execution of these megaprojects, which are pivotal in transforming South Korea's economy through investments in semiconductors, physical AI, and AI data centers.
Under the current regulatory framework, companies are required to amend their existing building permits when adding new structures to an ongoing project. The government has decided to revise these regulations, allowing firms to acquire separate permits for new buildings at the semiconductor cluster under construction in Yongin, south of Seoul. This change is expected to expedite 2.5 trillion won worth of investment in the area.
Moreover, the government plans to extend entry permissions to national industrial parks in the southeastern cities of Gumi and Pohang to include battery recycling firms, in addition to the current allowance for manufacturing companies related to the secondary battery industry. This move is anticipated to generate 100 billion won in business investment, further supporting the country's economic growth initiatives.