Ministry considers designation of two cross-regional regulatory free zones

South Korea's Ministry of SMEs and Startups on Aug. 5 considered designating two cross-regional regulatory free zones. The framework would let at least two local governments cooperate on experiments involving connected regulations, departing from an approach focused on individual regions and single technologies, the ministry said.

The ministry selected the two projects as candidates for designation and placed them on the deliberation committee's agenda. The proposals are tentatively scheduled to go before the Regulatory Free Zone Committee, chaired by the prime minister, for a final decision at the end of August.

One proposal would create a smart agriculture zone centered on South Jeolla and Gwangju, with North Jeolla and South Chungcheong participating, to test solar direct-current power for charging electric farm machinery and develop autonomously operated machinery.

The participating regions would first test their specialized technologies separately before conducting an integrated demonstration in the South Jeolla-Gwangju area.

The other proposal would bring North Gyeongsang and Busan together in a marine leisure zone, testing autonomous vessel operation, marine monitoring and unmanned rescue technologies from beaches to ports.

North Gyeongsang would verify autonomous-navigation technology while Busan tests unmanned safety systems before an integrated demonstration across both areas. The project aims to establish safety standards that could be used nationwide.

Separately, the committee discussed an overhaul intended to ensure that regulatory tests lead to statutory revisions and company growth. The ministry plans to strengthen communication with regulatory ministries and reduce the burden on companies applying for regulatory exemptions.

Noh Yong-seok, first vice minister at the Ministry of SMEs and Startups, said regulatory free zones had rationalized rules that obstruct new regional industries and added vitality to local economies. "It is now time to overhaul the system so that regulatory free zones can produce greater results," he said.