Four new global innovation special zones designated… Active support for overseas verification and certification

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Four new global innovation special zones designated… Active support for overseas verification and certification

’13th Regulation-Free Special Zone Committee’ held… Limited regulatory exceptions allowed

  • Reporter nameReporter Nam Gi-woong, Mobile Reporting Department
  • Entered 2024.05.01 01

Attracting 15.7 trillion won in investment and creating more than 6,800 jobs through 34 special zones

[Mobile Reporter Nam Ki-woong] The government designated four ‘global innovation special zones’ for the first time, upgrading regulation-free special zones to foster local high-tech industries. 

Accordingly, we plan to not only significantly expand regulatory special provisions for the newly designated global innovation special zones, but also actively support global expansion through overseas verification and certification. 

In addition, in the case of high-tech industries, it is difficult to do business in the country without regulations or standards, and considering the situation in which regulatory special cases through special regulation-free zones are not allowed or delayed, we plan to allow all regulatory special cases unless they are explicitly prohibited by law.

 Prime Minister Han Deok-soo is speaking at a meeting of the Special Regulation Free Zone Committee held at the international conference room in the annex of the Seoul Government Complex on the afternoon of the 30th. (Photo/provided by Yonhap News)
▲ Prime Minister Han Deok-soo is speaking at a meeting of the Special Regulatory Freedom Committee held at the international conference room in the annex of the Seoul Government Complex on the afternoon of the 30th. (Photo/provided by Yonhap News)

On the 30th, the government held the 13th Regulatory Free Special Zone Committee at the Seoul Government Complex, presided over by Prime Minister Han Deok-soo (Chairman), and deliberated on five new designation (drafts) of regulatory free special zones and four new designation (drafts) of global innovation special zones. ·It was decided. 

Meanwhile, a regulation-free special zone is an area that allows limited special regulations when passed through deliberation in order to foster local strategic and innovative businesses. 

So far, the government has designated 34 special zones, which has achieved results such as approving 174 special regulatory cases, attracting investment of 15.7 trillion won, creating jobs for about 6,800 people, and attracting 440 companies.

◆ Newly designated as the 9th regulation-free special zone

First, Gyeongbuk Cell Cultured Food, which was designated as the 9th regulation-free special zone, will conduct demonstrations to establish a cell extraction, culture, and production system from live animals or raw meat immediately after slaughter in order to commercialize cell cultured foods.

Cell-cultured foods have great potential as an eco-friendly alternative that reduces the resources and greenhouse gas emissions required to raise livestock, but production has been difficult in Korea due to the lack of standards for extracting cells from live animals or raw meat immediately after slaughter.

Accordingly, Gyeongbuk established a cell-cultured food development strategy last year and is promoting a food tech cluster. Through this special zone, it is expected to contribute to the development of the Gyeongbuk food tech industry and lead the domestic and international standards for cell-cultured food.

Daegu Innovation-Dental is also the first in the world to demonstrate the recycling of donated discarded teeth into dental bone graft material (medical devices) with the patient’s consent.

The need to recycle the 13 million discarded teeth that are discarded each year is being highlighted, but recycling of human materials other than the placenta is currently prohibited under the Waste Management Act.

Because Daegu is specialized in the dentistry and medical device industries, it is expected that this special zone will lead Daegu’s industrial development and domestic and international waste tooth recycling standards.

Gyeongnam Fishery By-Product Recycling conducts verification of the management system for recycling fishery by-products such as tuna and the production of high value-added products.

Recycling of fishery by-products is a new industry that reduces processing costs and greenhouse gases at the time of disposal and creates high added value. However, most of them are discarded due to the lack of standards for handling fishery by-products under the domestic waste management law, so the recycling rate of fishery by-products is 20% (25% for fish, 20% for tuna). It’s just that.

Accordingly, Gyeongnam produces the largest amount of fishery by-products in the country, has many related companies, and is actively promoting not only the fishing industry but also the anti-aging medical industry. Through this special zone, Gyeongnam will develop related industries and create high added value for the overall fishing industry. It is expected that

Gyeongnam lifestyle-friendly hydrogen mobility is also developing hydrogen fuel cells for small hydrogen mobility such as cargo bikes and conducting demonstrations for driving and charging systems.

Hydrogen has a long range and battery life per single charge compared to electricity, and has a short charging time, so it is highly likely to be used as a power source for lifestyle mobility. However, the use of hydrogen fuel cells in mobility other than vehicles, forklifts, and drones is prohibited in Korea.

However, as Gyeongnam is actively fostering the hydrogen industry, this special zone is expected to create a new market for small hydrogen mobility (bikes) following the existing large mobility (bus) market along with the industrial development of Gyeongnam.

Meanwhile, hydrogen power generation using green ammonia in South Chungcheong Province is also being demonstrated to develop a 45kw-class ammonia direct supply fuel cell that produces electricity by inputting ammonia as fuel.

While ammonia is attracting attention as a hydrogen carrier, ammonia direct supply fuel cells are an innovative technology that increases energy efficiency, but there are restrictions on the use of ammonia in Korea because there are no standards for using ammonia as a fuel cell.

Accordingly, South Chungcheong Province has excellent ammonia and hydrogen infrastructure, and this special zone is expected to contribute to the industrial development of South Chungcheong Province and the creation of a domestic eco-friendly green hydrogen ecosystem through the development of the world’s largest 45kw fuel cell.

◆ Newly designated as the 1st Global Innovation Special Zone

Gangwon AI Healthcare actively promotes support for overseas expansion, including the establishment and verification of a distributed clinical system and remote collaboration system between doctors and nurses, consulting, and overseas certification.

Meanwhile, distributed clinical trials that collect clinical data through wearables and mobile devices, deliver medicines, and conduct clinical trials at home are new opportunities for AI and digital companies, but in Korea, clinical trials are prohibited outside of medical institutions under the Medical Service Act and Pharmaceutical Affairs Act.

In addition, although it is not explicitly prohibited by law, the need for remote collaboration, which allows nurses to practice medicine in the presence of a remote doctor, is increasing.

Accordingly, based on Gangwon’s excellent biohealth infrastructure, it is expected to contribute to the development of new drugs and medical devices through distributed clinical trials, promote telemedicine, and support overseas expansion to become a center of cutting-edge healthcare.

Chungbuk Advanced Regenerative Bio actively promotes support for overseas expansion, including establishing a customized advanced regenerative clinical research platform within the special zone and overseas verification and certification.

The advanced regenerative bio market is growing rapidly around the world, but in Korea, development of related industries such as clinical research is still insufficient due to regulations on the Advanced Regenerative Bio Act.

According to the Advanced Regenerative Bio Act, which was revised earlier this year, clinical research will be fully permitted, but strict procedures must still be followed, so the establishment and verification of a clinical research platform through regulatory special provisions will be promoted to promote clinical research and treatment.

Therefore, based on the Osong Bio Cluster in North Chungcheong Province, the largest in Korea, this special zone is expected to contribute to the development of Korea’s advanced regenerative bio industry by activating clinical research and treatment and actively supporting overseas expansion.

Jeonnam DC Industry will build an integrated infrastructure for the DC power grid and actively promote overseas expansion support, including verification of the DC power grid and DC power equipment and overseas certification.

As leading countries such as the United States and Germany are in the early stages of converting from the existing AC power grid to a highly efficient DC power grid, we also need to secure the capabilities of the domestic DC industry by proactively responding to changes in the global environment.

Based on its excellent energy infrastructure, Jeonnam is expected to dominate the new market of the DC industry, which is in its early stages, and lead international standards through overseas cooperation such as DC power grid and equipment verification, overseas certification, and joint R&D.

Busan Next Generation Marine Mobility demonstrates eco-friendly and smart ship technology and actively promotes support for overseas expansion, such as overseas verification and certification.

Global competition for eco-friendly and smart ship technologies is expected to intensify in accordance with the ‘2050 Net-Zero’ goal led by the International Maritime Organization (IMO), but commercialization is difficult due to the insufficient domestic standards.

Busan is promoting a top-notch shipbuilding and marine industry based on its excellent infrastructure, and this special zone is expected to promote the development of eco-friendly ships and equipment and leap forward as a center of marine mobility through overseas cooperation such as overseas verification and certification.

Meanwhile, the government will create an overseas demonstration base with this global innovation special zone to support the building of performance through demonstration in overseas countries where actual business is possible. Once safety is proven through this, it will quickly promote regulatory improvement domestically through temporary permits. 

In addition, we actively support our companies’ overseas expansion, including direct consulting and cooperation with global clusters from planning to performance inspection and certification by overseas certification agencies. 

Prime Minister Han said, “I hope that the global innovation special zone will go beyond the region and grow into a cradle of innovation in our country.” He added, “Both the regulation-free special zone and the global innovation special zone are experimental grounds for trying new things beyond existing constraints, and the overall special zone system will be properly established.” He emphasized, “We will always listen to the voices of the field and quickly reflect them so that we can catch up.” 

At the same time, he urged local governments and central ministries to keep in mind that regulatory innovation is the most effective means to increase the creativity of business activities and the productivity of our economy without financial investment, and to promote special zone projects and regulatory innovation.

 Reporter Nam Gi-woong, Mobile Reporting Department nkw778@hanmail.net

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