SEOUL, October 24 (AJP) — South Korea plans to cut semiconductor industrial complex development times to within five years by fast-tracking permits, compensation and design, the government said Friday.
The plan would reduce the period from industrial complex planning to fab operations from more than 10 years by allowing approvals, land compensation and design procedures that are largely carried out sequentially to proceed simultaneously.
The measure is part of 13 regulatory changes unveiled at a meeting of the Presidential Regulatory Rationalization Committee as the government seeks to accelerate semiconductor investment amid intensifying competition over artificial intelligence chips and advanced manufacturing capacity.
An amendment to the Industrial Sites and Development Act enabling the fast-track process was introduced in July, while additional infrastructure approvals could be handled together if a semiconductor cluster is designated as a super-regional strategic industry special zone under legislation being pursued by the government.
Customs and bonded-zone procedures will also be streamlined across fab construction, equipment maintenance and exports.
The government plans to expand the designation of entire advanced industrial complexes as comprehensive bonded zones, reducing procedures currently handled separately by individual fabs. About 95 percent of Korea's semiconductor exports are manufactured or processed at bonded factories, according to the industry ministry.
Foreign equipment used during fab construction would become eligible for deferred customs payments, while repair parts for overseas-made chipmaking equipment could be stored at bonded factories in advance to reduce production disruptions when machinery breaks down.
Qualified bonded factories located far from airports or ports would also be allowed to transport pre-approved export goods before completing export declarations and file them while shipments are in transit.
Regulations covering high-pressure gases used in semiconductor manufacturing will be revised to allow technical reviews and permit changes for multiple gas cabinets to be processed together and non-reactive gases to be stored together.
The government will also consider special working-hour arrangements for key semiconductor R&D personnel in super-regional special zones, subject to compensation, worker health protections and consultations with labor and management.
Procedures for moving R&D prototypes out of qualified bonded factories for testing and inspection will be simplified, while tax exemptions will be introduced for equipment donated to nonprofit semiconductor test-bed operators to expand testing opportunities for domestic materials, parts and equipment suppliers.
Industry Minister Kim Jung-kwan said speed had become increasingly important in global semiconductor competition, with delays in infrastructure, construction or technology development potentially affecting companies' investment schedules and ability to secure markets.
The government plans to use a presidential semiconductor competitiveness committee as a cross-government coordinating body and a new industry ministry support unit to track corporate investment schedules from fab construction through operation.
The system is intended to resolve issues spanning multiple ministries and local governments before they delay investment projects.
The broader regulatory initiative also calls for legislation establishing super-regional special zones offering more than 320 regulatory exemptions and government support covering financing, infrastructure, tax incentives and talent.
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