On Wednesday, the South Korean government announced its plans to reduce regulations and eliminate administrative procedures in order to expedite the implementation of major corporate investment projects. These projects, which are worth a combined total of 46 trillion won (US$35.06 billion), include S-Oil Co.’s petrochemical plant project and the U.S. Sphere Entertainment Co.’s K-pop arena construction plan.
Finance Minister Choo Kyung-ho stated that although the country has recently experienced economic recovery, there are still numerous challenges and uncertainties for businesses due to high interest rates and other factors. He added that the government is committed to increasing investments and stimulating domestic consumption in order to further the recovery.
Accordingly, the government plans to consider a law revision to help S-Oil secure a site for a storage yard and a parking lot needed for its Shaheen project, a 9.3 trillion-won petrochemical plant under construction in Ulsan. Additionally, the government will fast-track licensing and other administrative procedures for Sphere’s K-pop arena project, reducing the period of the feasibility study from 42 months to 21 months.
The government’s deregulatory measures will also apply to other projects such as the establishment of a branch of a world-class art center in Busan and the construction of a new airport in the country’s southeastern region. Furthermore, special rules will be made to manage hazardous materials for battery production factories and to reduce costs for companies such as LG Energy Solution Ltd. and SK On Co. that are investing 1.9 trillion won in the establishment of new facilities in Chungcheong.