The government is streamlining permitting procedures and regulations to expedite corporate investments totaling 7.9 trillion won, focusing on the transition to electric vehicle factories and clean hydrogen power. The time required for permits and impact assessments, which can take over three years to convert internal combustion engine production lines to electric vehicle plants, will be reduced to within one year. Additionally, the clean hydrogen power bidding market will reopen this month.
On October 1, Deputy Prime Minister and Minister of Economy and Finance Lee Hyung-il chaired an emergency economic meeting at the Government Seoul Building, where he announced the 'Field-Centered Corporate Investment and Innovation Support Plan (Phase 2).'
The government will first support the early execution of investment projects in green transition, secondary batteries, and advanced sensors.
In Ulsan, a project is underway to convert an internal combustion engine production line into a factory focused on autonomous electric vehicles. The government plans to establish a fast track with Ulsan City and the relevant company to shorten the permitting and impact assessment period to within one year, facilitating approximately 4 trillion won in new investments.
The clean hydrogen power bidding market will also be reopened this month. The government noted that the cancellation of last year's competitive bidding announcement has delayed investment decisions for related companies in production and power generation facilities. This month, the bidding will be announced, and the evaluation system will be improved by increasing the scoring for contributions to the domestic clean hydrogen ecosystem. After selecting the operators, the government plans to support the execution of investments totaling about 3 trillion won.
The period for changing environmental impact assessments to introduce eco-friendly and high-efficiency liquefied natural gas (LNG) blending technology in by-product combined power generation facilities will also be shortened. Consulting for preparing environmental conservation plans will reduce the timeframe from over three months to within one month, helping to expedite approximately 69.7 billion won in fuel cost savings and assist companies in securing investment resources.
A fast track for rapid designation will be applied to the Muan National Industrial Complex candidate site, supporting investments of about 761.5 billion won by shortening the permitting and impact assessment procedures by more than one year.
From 2027, special safety management measures for hazardous materials related to secondary batteries will be expanded to include material, parts, and equipment companies, promoting approximately 70.2 billion won in new investments. The government will also support the entry of underwater acoustic sensor companies into bio-convergence industrial technology complexes, backing investments of about 40 billion won for manufacturing facility expansions.
The government will also revise regulations that hinder corporate investment. By 2027, it plans to allow integrated bidding for electrical and communication work when constructing semiconductor fabs, which currently requires separate bidding. This change aims to reduce construction time specifically for semiconductor fabs.
The installation procedures for cylinder cabinets that protect semiconductor manufacturing cylinders will be simplified. When installing multiple cabinets, technical reviews and change approvals will be processed collectively under a new semiconductor special notice.
The criteria for small-scale environmental impact assessments for agricultural solar power will also be relaxed. Currently, projects in agricultural areas larger than 7,500 square meters require assessments, but agricultural solar power projects under 20,000 square meters will be excluded from this requirement. The goal is to amend the enforcement decree by December of this year.
Additionally, the government will expedite the rapid designation of regulatory sandboxes for the installation of standalone reformers within buildings. The reasons for adjusting operating costs in revenue-generating private investment projects (BTO) will include changes in labor costs due to modifications in working hours.
Financial support for advanced industries will also be expanded. The 2027 budget includes 5 billion won for securing key technologies for large-diameter wafer processing equipment for next-generation power semiconductors and 7 billion won for establishing demonstration infrastructure. Furthermore, 13.3 billion won will be allocated for the development of next-generation battery technology for humanoid robots.
A dedicated research and development (R&D) project for the technological development of three core components of robots—actuators, sensors, and robotic hands—will also be established. From 2027 to 2029, the government plans to invest 100 billion won, with 30 billion won reflected in next year's budget.
Policy Coordination Officer Joo Hwan-wook stated, “We will closely monitor the implementation of these measures to ensure they lead to actual investment results. We will continue to support corporate investment and innovation swiftly, particularly in new industries, by preparing a third phase of corporate investment and innovation support plans.”
* This article has been translated by AI.
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