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Mayor Park Heong-joon Announces Overhaul of Industrial Complex Permitted Industry Structure: First Nationwide Reform Led by a Municipal Government

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Busan Metropolitan City (Mayor Park Heong-joon) announced that it will comprehensively reform the permitted industry classification system in industrial complexes to respond to changes in the industrial environment and to promote corporate investment.

This reform aims to ease restrictions on business activities and enhance the competitiveness of industrial complexes.

Until now, industrial complexes have operated under a “positive system” that permits only a limited range of industries, mainly manufacturing. While this system was partially necessary in the early stages of industrial complex development for efficient management and fostering manufacturing industries, it has increasingly shown limitations in reflecting corporate demand amid recent industrial convergence involving research and development (R&D), design, data, and service industries.

In particular, restrictions on permitted industries have led to cases where companies miss investment opportunities or consider relocation, while the requirement for companies to bear costs when changing permitted industries has also acted as a barrier to expanding investment.

In response, the city will comprehensively reform the permitted industry classification system across all industrial complexes in the city, excluding national industrial complexes, and will introduce a “negative system” in which most industries are allowed except for a limited number of restricted sectors, such as those causing environmental issues, in newly developed industrial complexes.

This reform marks the first such institutional change in 46 years since the initial planning of Busan’s first industrial complex, the West Busan Smart Valley General Industrial Complex (formerly Sinpyeong and Jangnim), in 1980.

The city plans to have the Mayor of Busan Metropolitan City, as the managing authority of industrial complexes, directly lead the restructuring to flexibly respond to diverse location demands of companies across Busan and to establish a foundation for the dynamic growth of emerging industries.

Through this reform, the city aims to expand the scope of permitted industries and enhance flexibility in business activities so that industrial complexes can function as a foundation for future industrial ecosystems.

The restructuring will be carried out based on phased, sector-specific, and regional strategies reflecting the opinions of tenant companies.

The city plans to expand the tangible effects of institutional improvements through a phased approach.

First, for nine small-scale industrial complexes with an area of less than 150,000 square meters, 37 non-manufacturing industries—including knowledge-based and information and communications industries—will be fully opened by the first half of 2026.

Subsequently, for 28 completed industrial complexes in the city, excluding the Myeongji and Noksan National Industrial Complexes, the city will review infrastructure capacity and environmental conditions and expand the restructuring of permitted industries in phases by 2027.

For aging industrial complexes that have been in operation for more than 20 years, the city plans to improve industrial environments in connection with regeneration and advancement projects.

The sector-specific strategy focuses on enhancing the competitiveness of industrial complexes by expanding permitted industries centered on advanced strategic industries.

Industries related to the government’s 12 advanced strategic sectors—semiconductors, secondary batteries, vaccines, displays, hydrogen, future mobility, bio, artificial intelligence, defense, robotics, critical minerals, and content—as well as Busan’s five future industries—power semiconductors, secondary batteries, future aviation, digital finance, and digital healthcare—will be prioritized for expansion to advance the industrial structure.

The city will also reflect demand for convergence industries such as R&D, data, and services to enhance flexibility in business activities.

Through this, industrial complexes will expand from production-centered bases into technology- and knowledge-based industrial ecosystems.

The regional strategy focuses on promoting balanced industrial development by allocating industries tailored to regional characteristics.

The area surrounding Gadeokdo New Airport will focus on aviation parts and aircraft maintenance, repair, and overhaul (MRO); the West Busan region will focus on future mobility; and the East Busan region will focus on bio, healthcare, and power semiconductor industries.

Through regionally specialized industries, the city aims to strengthen connectivity and competitiveness within the industrial ecosystem.

The functions of industrial complexes and permitted industries will be reviewed every five years to respond to changes in the industrial environment.

Mayor Park Heong-joon stated, “This restructuring is a measure to respond to changes in the industrial environment by easing restrictions on business activities and improving investment conditions. Through a five-year review system, we will continue to enhance the competitiveness of industrial complexes,” adding, “We will reduce the time and cost burden for businesses, increase flexibility in industrial activities, create an industrial ecosystem that attracts companies and talent, and make every effort to enable Busan to leap forward as a global hub city through the enactment of the Special Act on Busan Global Hub City.”