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South Korea Plans Mega Deregulation Zones and Negative-List Rules for Tech

The plan signals a shift to rules that allow most activity in high-tech sectors unless explicitly banned.

Overview

  • The Regulatory Rationalization Committee, which held its first plenary Wednesday, heard President Lee call for scrapping outdated rules and adopting a negative-list approach in advanced industries.
  • The committee was overhauled under direct presidential oversight with broader private-sector roles, including civilian vice chairs, to speed regulatory decisions.
  • Yoon Chang-ryul proposed region-wide “mega special zones” that pair rule waivers with support packages because more than 80 small, scattered zones across about 2,400 sites have delivered limited results.
  • Ministries outlined sector hubs, including a robotics center, a renewable energy zone, a bio cluster, and an area focused on AI-powered autonomous vehicles.
  • Lee linked the push to easing the capital region’s overconcentration and said the government would move quickly to curb any problems that arise from looser rules.