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Govt. to Ease Regulations on Industrial Complexes

According to Yonhap News,

(SEOUL = Yonhap News) Companies will be able to cut the cost of using green areas within industrial complexes as the government seeks to reduce companies’ burdens arising from the expansion of sites for factories.

The Ministry of Industry, Trade & Energy preannounced the revised enforcement decree of the Industrial Cluster Development and Factory Establishment Act (Industrial Cluster Act) on April 21. The revised enforcement decree is scheduled to go into effect in June.

Under the revised enforcement decree, companies that use green areas in industrial complexes to expand their sites for factories will be exempted of the cost of establishing public facilities within the scope of 50 percent of the development profits that are derived from the land price difference.

The current regulation requires companies to establish public facilities and hand over development profits to the central or local governments. The government’s intention is to allow a deduction for a portion of the cost of establishing public facilities, as the companies are seen to bear excessive burdens.

The revised enforcement decree also allowed heavy industry-oriented complexes that suffer land shortages to provide nearby green areas to companies.

The government drew up the measure after it was pointed out, in last month’s ministerial meeting on regulatory reform, hosted by President Park Geun-hye, that companies were reluctant to invest KRW 5 trillion in the Yeosu National Industrial Complex to use green areas for factory sites due to the requirements of the current enforcement decree.

Copyrights Yonhap News. All Rights Reserved.

Source Text

Source: Yonhap News (April. 21, 2014)

** This article was translated from the Korean.
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