1. Reason for Revision
To promote the development of the space industry and strengthen national competitiveness, the revised Space Development Promotion Act (Act No. 20478, promulgated on October 22, 2024, effective April 23, 2025) allows for the designation of investment promotion zones in space industry clusters and aerospace industry-specialized zones. The purpose of this revision is to clarify the delegated matters, such as the designation and cancellation of investment promotion zones.
2. Main Content
a. Criteria and Conditions for the Designation of Investment Promotion Zones (New Article 21-4)
1. The criteria for the investment attraction amount and other standards for investment promotion zones are specified in Appendix
2. The regional conditions for investment promotion zones are defined as follows:
i. Space industry clusters designated under Article 22 of the Space Development Promotion Act
ii. Aerospace industry-specialized zones designated under Article 8-2 of the Aerospace Industry Development Promotion Act
iii. Areas where the necessary permits, approvals, or registrations required by individual laws for operating businesses specified in Appendix 1 have been obtained or reported.
b. Procedure for Designating Investment Promotion Zones (New Article 21-5)
1) The Director of the Korea Aerospace Agency (KAA) must announce the name, location, area, etc., of the designated investment promotion zone in the government gazette or on the KAA website.
The heads of relevant central administrative agencies, local governments of the designated areas, and investors (limited to those who have applied under Paragraph 2) must be immediately notified.
c. Procedure for Changing the Designation of Investment Promotion Zones (New Article 21-6)
d. Management of Investment Promotion Zones (New Article 21-7)
1) The Director of the KAA must monitor investment performance at least once every six months and prepare and maintain the results.
e. Procedure for Cancelling the Designation of Investment Promotion Zones (New Article 21-8)
1) If the investment is not completed within 10 years from the date of announcement of the investment promotion zone (5 years for zones designated upon the request of investors), the Director of the KAA must revoke the designation after a public hearing.
f. Support for Research Institutions, International Organizations, General Hospitals, and Universities within Investment Promotion Zones (New Article 21-9)
1) Those seeking support for necessary costs in purchasing land and constructing facilities within investment promotion zones must submit a business plan to the Director of the KAA. The Director of the KAA will decide on full or partial support after review by a committee. In this case, the Director of the KAA must consult with the Minister of Strategy and Finance and the heads of local governments regarding the budget required for the support.
