S Korea-regulations

S. Korea lifts set of regulations to pave way for projects worth 2.8 tln won

By Kang Yoon-seung

SEOUL, March 2 (Yonhap) -- South Korea's finance ministry said Thursday it has lifted a set of regulations to support local businesses' investment projects worth 2.8 trillion won (US$2.14 billion) in various industries, including rechargeable batteries and logistics.

The nine projects are expected to create around 12,000 new jobs, according to the Ministry of Economy and Finance.

"Challenges for exports and investment have been rising following the slowing global economy amid monetary-tightening moves and the downcycle in the chip industry," the ministry said in a statement, pointing out that lifting excessive regulations is necessary to prop up business activities.

For instance, the government will allow electric vehicles to enter automated parking garages, which is banned under existing regulations due to their weight. Such garages will also be able to install charging stations.

South Korea aims to revise related rules by the second quarter of 2024 and develop safety guidelines for the chargers by 2025.

In addition, the government has lifted the designation as farmland on a plot of land in Ochang, 100 kilometers south of Seoul, to help a company build a research and development center there for rechargeable batteries.

The government also plans to ease criminal punishments for minor violations of local rules that can restrict the freedom of citizens and companies.

It will focus on revising punitive measures with fines of 5 million won (US$3,823) or less to avoid giving unnecessary criminal records to people.

For example, individuals who use the title "cook" without a proper certificate will be fined 3 million won or less under the food sanitation law instead of facing a jail term of up to three years, which is the existing rule.

In line with efforts to reduce excessive regulations, the Korea Customs Service also announced that it will no longer require inbound travelers to submit customs forms when they have nothing to declare, starting in July.

The decision was made after the agency found that approximately 98.8 percent of inbound travelers, including foreigners, were required to submit these forms in 2019 despite having nothing to declare.

The new policy will initially be applied at Incheon International Airport and Gimhae International Airport this year and will be expanded to other airports in 2024.

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