- Information Center
- Investment News
The Ministry of Trade, Industry and Energy (MOTIE) announced last Wednesday that it will alleviate regulations to facilitate corporate investment and improve the business environment.
The decision was based on a review of all regulations on corporate activities, which has been conducted since May by MOTIE and the Office for Government Policy Coordination.
Among the 124 regulations in 18 corporate activity-related legislations, eight regulations will be eased. More specifically, the positive permissions (expressing what can be done) in the regulations will be converted to negative permissions (expressing what cannot be done).
Also, while medical institutions within Free Economic Zones have been only permitted to operate public bath business, tourist accommodation business and tourist facilities business as incidental businesses, they will now be permitted to engage in travel business as well.
To widen the scope of permitted incidental businesses, the government plans to revise the Enforcement Decree of the Special Act on Designation and Management of Free Economic Zone in the first half of next year.
The change reflects the medical industry’s request for deregulation to attract more foreigners to Korea for medical tourism purpose.
Also, while eligibility to move into Free Trade Zones has been limited to companies whose export accounts for no less than 50 percent of sales for the past three years, the minimum export ratio requirement will be reduced to 30 percent.
This measure is aimed to increase the occupancy rate of four Free Trade Zones – Donghae (14 percent), Yulchon (31.2 percent), Ulsan (17.2 percent) and Gimje (5.6 percent) – with a low occupancy rate.
The government also decided to allow combined heat and power plants in industrial facility zones, which have only been allowed in supporting facility zones in industrial complexes so far.
Source: Yonhap News (Sep. 4, 2013)
** This article was translated from the Korean.