SEOUL - The South Korean government has committed to easing regulations and simplifying administrative processes to facilitate the swift execution of significant corporate investment projects. This initiative includes supporting S-Oil Co.'s petrochemical plant project and U.S. Sphere Entertainment Co.'s plan to construct a K-pop arena.
According to Yonhap News Agency, the government has outlined a series of tailored deregulatory measures for 18 private company-led projects, cumulatively valued at 46 trillion won (US$35.06 billion). These measures aim to overcome business challenges and improve investment conditions in the face of high interest rates and other economic uncertainties.
Finance Minister Choo Kyung-ho, speaking at a meeting with economy-related ministers in Seoul, acknowledged the challenging economic conditions both domestically and internationally. He emphasized the government's commitment to supporting economic recovery by expanding investments and promoting consumption to revitalize domestic spending.
For S-Oil's Shaheen project, involving the construction of a large-scale petrochemical plant in Ulsan, the government plans to consider revising laws to assist in securing a storage yard and parking lot. This comes as the refiner faces hurdles in using nearby sites due to existing regulations on industrial cluster development.
Sphere's project to establish a K-pop arena in Hanam, near Seoul, is another beneficiary of the government's decision. The U.S. company aims to commence construction before 2025 but faces lengthy administrative processes, including a feasibility study and reviews of development restrictions. The government intends to accelerate licensing and other procedures to halve the period to 21 months, aiding the project's timely progression.
Additionally, the government is set to introduce special rules on the management of hazardous materials to expedite the construction of battery production factories and reduce costs. This initiative aligns with plans by LG Energy Solution Ltd., SK On Co., and other companies to invest approximately 1.9 trillion won in establishing new facilities in Chungcheong province over the next few years.
Other projects earmarked for support through deregulation include establishing a branch of a world-class art center in Busan and building a new airport in South Korea's southeastern region. These measures reflect the government's broader strategy to stimulate economic growth by enabling efficient and timely corporate investments.