01-13-2009

By Na Jeong-ju
Staff Reporter (Korea Times)

The administration lifted bans on the construction of new factories and the expansion of existing units in 89 industrial complexes in Seoul and the surrounding Gyeonggi Province Tuesday, as part of efforts to boost corporate investment.

It also made it easier for firms to increase production lines even though their factories are located outside the industrial zones.

The measures will benefit hundreds of conglomerates and small- and mid-sized enterprises that own factories in the capital area, but may spark protests from environmental groups.

The Cabinet approved the measures at its weekly meeting.

“Firms will be allowed to enhance and increase production facilities in the capital area,” said an official at the Office of the Prime Minister. “We will also beef up measures to reduce air pollution and improve the quality of drinking water. The firms that violated rules on environmental protection will be strictly punished.”

Businesses had complained that the regulations on factory renovation are too strict.

A recent survey conducted by the Federation of Korean Industries, the nation’s largest business lobby, showed that 72.1 percent of the 294 companies surveyed would consider expanding local investment if the government softens rules on firms.

The survey reflected “high expectations over the government’s pledge to make a business-friendly environment,” according to the federation.

jj@koreatimes.co.kr

Source: The Korea Times
http://www.koreatimes.co.kr/www/news/nation/2009/01/116_37809.html