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National Assembly Legislation

  • Industrial Cluster Development and Factory Establishment Act
    • Competent Ministry : Ministry of Trade, Industry and Energy
    • Advance Publication of Legislation : 2019-05-14
    • Opinion Submission Deadline : 2019-05-28
Reasons for Proposal

According to the current Act, the Minister of Trade, Industry and Energy shall, in consultation with the head of a relevant central administrative agency, determine and notify the public of the standards for factory sites, and the head of a Si/Gun/Gu shall ascertain whether it is possible to establish a factory on the land in the district under his/her jurisdiction and notify the public of such findings.
However, while the “notification system of standards for factory sites” is implemented in accordance with the current Act, the clause of restrictions on the factory sites that may cause environmental pollution was deleted in 2008. Accordingly, it is impossible to restrict a factory site even if the establishment of the factory has a significant effect on the use of water such as water sources or damage neighboring residents, farmland, and the natural environment.
Therefore, the amendment aims to provide direct grounds in the Act so the head of a Si/Gun/Gu may restrict a factory site where he/she deems that the establishment of such factory will have a significant effect on the use of water such as water sources or damage neighboring residents, farmland, and the natural environment (Article 8-2 newly inserted).

Major Provisions

Restriction of Factory Sites (Article 8-2)

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