By designating and promoting energy industry convergence complexes, the current Act defines matters to facilitate the clustering and convergence of the energy industry and other energy-related industries and allows local tax breaks or R&D funding as part of a policy to support occupant enterprises.

However, support for occupant enterprises is weaker than other industry clustering programs such as national food clusters, marine industry clusters, and water industry clusters and limited only to the priority energy industry and its designated energy-specialized enterprises. In particular, since there is virtually no support policy for energy-related enterprises, which have huge upstream and downstream effects on the energy industry or form an industry likely to advance further through convergence, few specialized and related enterprises have been discovered and attracted even though it has been 2 years since the current Act was enforced. Practical institutional support is urgently needed to fulfill the intended purpose of the Act, which is to facilitate the clustering and convergence of the energy industry and other energy-related industries.

In this regard, this Act aims to prepare a basis for policy support for occupant enterprises in energy industry convergence complexes such the reduction and exemption of national and local taxes, payment of employment subsidies, and operation of support centers.

Details

A. Change the definition of energy-related industry to an industry for systems, parts, materials, equipment, information, and services related to the energy industry, which can generate added value or increase economic ripple effects by combining with the energy industry or using or converging with renewable energy, and add the definition of energy-related enterprise (Article 2, subparagraphs 3 and 6)

B. Require the establishment of a master plan every 3 years and allow for changing the master plan at the request of the head of any relevant central administrative agency or Mayor/Do Governor (Article 5, paragraphs (1) and (3))

C. Prepare a basis to consider the designation or change of any energy industry convergence complex to have been designated under other laws (Article 10-2 newly inserted)

D. Allow the establishment of designated centers for energy industry convergence complexes to promote and manage energy industry convergence complexes (Article 12-2 newly inserted)

E. Define special cases such as tax breaks, funding, employment subsidies, and use of national and public properties to support energy-specialized enterprises and energy-related enterprises (Articles 15, 15-2, 20, and 21 newly inserted)

F. Add energy industry convergence complex establishment projects and define the project operator’s designation, obligations, and tax and charge breaks (Articles 22 through 24 and 33 newly inserted)

G. Allow approval for action plans to have the effect of certification and/or permit under other laws (Articles  25 and 26 newly inserted)

H. Define in detail matters required at the stage of project establishment such as land acquisition or final inspection (Articles 27 through 32 newly inserted)

Note

This Act rests on the premise that the “Act on Regulation of Special Cases of State Property” (Bill no. 00000), “Restriction of Special Taxation Act” (Bill no. 00000), and “Restriction of Special Local Taxation Act” (Bill no. 00000), represented and proposed by National Assembly Member Heo Young, are passed. If the bills are not passed or are passed with modification, this Act must be adjusted accordingly.

Define the establishment project operator’s obligations (Article 23), the establishment project operator’s designation cancellation and substitution (Article 24), approval of the action plan (Article 25), commencement of project establishment (Article 27), land acquisition (Article 28), final inspection (Article 29), and disposal of the established land (Article 32)