South Korean Government Accommodates Proposals from Local Governments That Will Push for Innovative Growth in Different Regions

Aug 09, 2018

South Korean Government is going to designate Jeju Island as a ‘regulatory sandbox-type regional innovation growth exclusive zone’ that will be without regulations on blockchain and electric vehicle businesses. As a result, Governor Won Hee-ryong of Jeju Island’s plan of making Jeju Island as a hub for blockchain industry has gained momentum. South Korean Government is going to invest its budget to establish AI (Artificial Intelligence) and data centers in Sejong-si and allow electric kickboards on streets and sidewalk to invigorate ‘Smart Mobility’. It is going to install a drone flight safety certification center in Incheon-si and form a manufacturing innovation park that is 1.5 times greater than Yeooui-do in Chungnam.
South Korean Government is expecting that there will be $2.23 billion (2.5 trillion KRW) worth of investments and 10,000 jobs by supporting regional innovative growth.
South Korean Government held ‘Innovative Growth Meeting with Different Regions’ at Sejong Convention Center on the 8th along with mayors and governors of 17 local governments and finalized on such plans.
First, South Korean Government finalized on ‘ways of supporting innovative growth projects’ that were proposed by each local government. Although there are regional demands, local governments found many tasks that are going through difficulties due to excessive regulations and have prepared ways to support them.
South Korean Government is going to look into designating Jeju Island as a ‘regulatory sandbox-type regional innovation growth exclusive zone’ for blockchain and electric vehicles after accommodating Jeju Island’s proposal. When revised bill of Regional Special Area act that is based on relevant basis is passed through the National Assembly, South Korean Government is going to support R&D and pilot projects of companies that will participate in Jeju Island’s exclusive zone. These companies will work on blockchain and electric vehicle business without regulations. Previously, Governor Won announced his plan of creating ‘Jeju Crypto-Valley’.
“We will be able to create $56.4 million (63.2 billion KRW) worth of investments and 1,800 jobs in 5 years if we designate an exclusive zone in Jeju Island.” said South Korean Government.

Deputy Finance Minister Kim Dong-yeon (second from the left) presided Innovative Growth Meeting that was held at Sejong Convention Center on the 8th. <Deputy Finance Minister Kim Dong-yeon (second from the left) presided Innovative Growth Meeting that was held at Sejong Convention Center on the 8th.>

Sejong-si, which is pursuing formation of national Smart City, will have individual transport unit regulation lifted up. South Korean government is going to allow transport units such as electric kickboards on streets, bike lanes, and sidewalk. It is going to provide budget for establishing AI and data centers within national demonstration cities (Sejong, Busan) and push for designating a national industrial complex in Sejong-si.
South Korean Government is pushing for rapid construction of a drone flight safety certification center at Cheongna Robot Land whenever a land for a certification center is finalized after accommodating a proposal from Incheon-si. It is also applying an opinion from Chungcheongnam-do Province that wants to utilize national land as manufacturing innovation park (Smart Factory) and is ordering relevant departments to look into preparing a plan for utilizing corresponding national land.
Besides these plans, South Korean Government is also planning to support formation of an innovative industrial complex at Centum 2-Jigu (Busan), establishment of foundation for innovative driving forces in neurological field (Daegu), formation of floating offshore wind power complex (Ulsan), installation and operation of charging facilities for hydrogen-powered vehicles (Gyeongnam), improvement in pre-feasibility study system (Gyeongbuk), increase in support for U-turn and relocating (Chungbuk, Gyeongbuk), and renovation of Daedeok exclusive zone (Daejeon).
South Korean Government is expecting that this measure will create $2.23 billion (2.5 trillion KRW) worth of investments and 10,000 jobs.
Along with this plan, South Korean Government has also decided to invest in 10 SOC (Social Overhead Capital)-related fields closely related to these regions in a short period of time (more than $6.25 billion (7 trillion KRW) by 2019). Leisure and health activities and improvement in regional energies such as city reclamation are some of targets for South Korean Government’s investment.
South Korean Government is going to establish a regional innovation council on the 21st of September so that this council can lead innovative activities in different regions. It is also going to set up regional innovation support groups at offices and bureaus so that they can be in charge of supporting the regional innovation council. Previously, regional innovation projects were responsible by different departments and they had produced insufficient outcomes.
“There are limits to innovative growth with just effort from a central government. We need participation from local governments and companies from different regions to bring about changes.” said Deputy Finance Minister Kim Dong-yeon. “South Korean Government is planning to invest more than $4.46 billion (5 trillion KRW) with next year’s budget into platform economy and 8 leading projects.”
Staff Reporter Yoo, Seonil | ysi@etnews.com

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