Reasons for Proposal
To create new industries for a new growth engine in this era of the Fourth Industrial Revolution, it is necessary to support specialized industries by region through drastic regulatory reforms. To that end, drastic regulatory expemptions must be applied to regional strategic industries to maximize competitiveness and efficiency, thereby promoting private investments and industrial innovation. This proposal aims to establish a legal basis for tailored regulatory exemptions by region to create the world's best business environment by enhancing the competitiveness of regional specialized industries and promoting industrial convergence and structural innovation.
Details
A. Change the name of the existing Act to the Act on Special Cases Concerning the Special Economic Zones for Specialized Regional Development and Deregulation Area as a regulation free zone system has been introduced to support regional strategic industries and revitalize existing regional specialized development areas
B. Prescribe that the purpose of this proposal is to support regional strategic industries through the operation of regulation free zones to lay the foundation for the growth of regional new technologies and create more jobs, thereby contributing to the national economy (Article 1)
C. Define "Regional Strategic Industry" as an industry included in a regional strategic industry support plan for regional development in accordance with regional characteristics (Article 2 (8))
D. Define "Regulation Free Zone" as a zone where regulatory exemptions are applied to support regional strategic industries that meet regional characteristics (Article 2 (9))
E. Permit, in principle, regional strategic industries and related businesses in a Regulatory Free Zone, except for where there is a restriction or prohibition that is explicitly enumerated in other Acts (Article 4 (1))
F. Require the Mayor/Do Governor who intends to operate the regulation free zone to establish a support plan and apply for the designation of regulation free zone to the Minister of SMEs and Startups; and obligate the Minister of SMEs and Startups who received the application to approve such support plan and designate the applied area as a Regulation Free Zone through thec onsultation with the heads of related central administrative agencies and the deliberation and resolution of the Regulation Free Zone Special Committee (Article 73 and Article 74)
G. Operate the Regulation Free-Zone Special Committee under the leadership of the Prime Minister; and operate the Regulation Free Zone Office under the Ministry of SMEs and Startups to handle administrative affairs of the Regulation Free Zone Special Committee (Article 79)
H. Obligate the Regulation Free Zone Special Committee to deliberate and resolve the matters concerning the designation, change and cancel of regulation free zones, the basic direction of the support plan and the confirmation of regulation on the regional strategic industries within regulation free zones, and regulatory exemptions and improvement for the company verification exemption, foundation business of new technology, and operation of regulation free zone, etc. (Article 80)
I. Allow anyone who intends to pursue regional strategic industries in a regulation free zone to receive the confirmation of whether the Act is applied, its interpretation, etc., from central administrative agencies through the Mayor/Do Governor and to rapidly check the confirmation of regulations by specifying the reply period in the Act (Article 82)
J. Allow anyone who intends to promote a regional strategic industry, etc., in a regulation free zone and fulfills certain requirements such as safety to ask the Mayor/Do Governor to grant the company verification exemption; and allow the Minister of SMEs and Startups to grant such company verification exemption after being reviewed by the heads of the related central administrative agencies and through the deliberation and resolution of the Free Zone Special Committee (Article 83)
K. Require anyone who intends to pursue a regional strategic industry in the Regulation Free Zone to apply for a foundation business of new technology that can establish a business plan and carry out a pilot project to verify technology and examine market reaction; and allow the Minister of SMEs and Startups to approve the application through the deliberation and resolution of the Regulation Free Zone Special Committee based on the review report of the related central administrative agency (Article 85)
L. Require a business entity that is approved as a foundation business of new technology to purchase insurance coverage or join a mutual aid to compensate for personal and material damages that may arise from the business, before business operations begin; and require a business entity which is granted the company verification exemption to purchase insurance coverage or a join a mutual aid in accordance with the deliberation and resolution of the Regulation Free Zone Special Committee (Article 88)
M. Allow a business entity which is granted the company verification exemption to recommend to the head of the central administrative agency necessary measures such as the enactment, revision or abolition of relevant Acts and Decrees; and allow a business entity which is approved as a foundation business of new technology to recommend to the head of the central administrative agency those measures such as the enactment, revision or abolition of relevant Acts and Decrees in the contemplation of the effectiveness of the relevant business (Article 89 (1) and (2))
N. Prescribe that in an R&D special zone located in the regulation free zone, the holding ratio of stocks, the period of researchers’ leave and the permitted types of buildings may be different from the provisions of the Act (Article 90)
