MKE Gets Softer on Industrial Integration, Factory Foundation
MKE Gets Softer on Industrial Integration, Factory Foundation
  • Chun Go-eun
  • 승인 2009.01.16 11:24
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Factory workers in Korea
The Ministry of Knowledge Economy (Minister Lee, Yoonho) notified the legislation of the revised bill of the enforcement ordinance in the Act on Activation of Industrial Integration and Factory Foundation on December 18 as part of the followup measures of the Plan on the Efficient Use of National Lands that the 8th National Competitiveness Reinforcement Commission reported and decided on October 30.

Reasons for Revision

The recent global financial crisis has caused the domestic object-economy to become stagnant. Thus, a revolutionary reform of the controls is required to activate the object-economy through the stimulation of domestic demands and the creation of jobs through the expansion of enterprise investment. This revision is intended to improve relevant articles and correct any defects found in the operation processes of the current system in order to urgently reform the irrational control of excessively restricting enterprise activities among the controls of factory location, and to cope with the government's policy of expanding renewable energy.

Details of the Revision

The relevant articles will be improved as the revision specified in Annex 1 of the enforcement ordinance of the Act on Metropolitan Area Maintenance Plan - range of the overcrowding suppressive district, the growth management district, and the natural preservation district - is promoted (Articles 3 and 4-2 of the bill).

The efficient use of spare sites in a factory and the activation of relevant industries will be promoted by allowing the installation of solar energy plants in the spare sites of a factory (Article 21 of the bill).

When calculating the area for factory construction in the natural preservation district where a pollution totaling management plan is not in effect and operated in accordance with the Act on Quality Improvement for Waterworks in the Han River Water System and Support for Residents, the area of offices and warehouses, which don't have large pollution factors, will be excluded, through which the equity with other districts will be raised (Article 25 of the bill).

In the industrial complexes of the overcrowding suppressive district, new construction or the enlargement of factories will be allowed, and in any other areas, the range of the enlargement of the existing factories including high-tech businesses will be expanded (Annex 1, Article 26 of the bill).

In the industrial complexes of the growth management district, the new construction or the enlargement of factories will be allowed, and in any other areas, the range of the enlargement of the existing factories including high-tech businesses will be expanded (Annex 2, Article 27 of the bill).

Restrictions on the business types that can be moved to the industrial areas of the growth management district from the overcrowding suppressive district and the natural preservation district will be abolished (Annex 2, Article 27 of the bill).

In some areas of the natural preservation district where the pollution totaling management plan is made and operated in accordance with the Act on Quality Improvement for Waterworks in the Han River Water System and Support for Residents , the new construction or the enlargement of the factories that don't correspond with the facilities specified under Article 6 of the Enforcement Regulation of the Act on the Preservation of Water Quality and Water Ecosystem will be allowed (Annex 3, Article 27-2 of the bill).

In the case of calculating the area for factory construction in the natural preservation district, the area of offices and warehouses is excluded so the restriction on the new construction or the enlargement of subsidiary facilities, such as offices and warehouses, which are not the subject for control, will be abolished (Article 27-2 of the bill).

Unlike other areas, in the Metropolitan Area, only registered factories can change their business type so enterprises have difficulty in adapting themselves to the rapid changes in the technical environment; the time for allowing them to change their business types will be unified to the same as that for factories in any areas other than the Metropolitan Area (Article 27-3 of the bill).

In case a development plan doesn't need to be changed (slight development acts) in the industrial complexes that are built up in accordance with Article 13-3 of the Act on the Location and the Development of Industry, discussions with the party who has the right for designation can be omitted in relation to the changes in the basic management plan (Article 42 of the bill).

For those who have the right to receive industrial sites in accordance with the ordinance determined by a provincial governor based on the revision of Article 42-3-5 of the Act on the Location and the Development of Industry, the contract for residence can be made without any notice (Article 48-2 of the bill).


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