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Busan and Gyeongbuk Secure First-Ever Designation for the New Marine Leisure Interregional Regulatory Free Zone

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Busan Metropolitan City, led by Mayor Chun Jae-soo, announced that the New Marine Leisure Interregional Regulatory Free Zone, jointly promoted with Gyeongsangbuk-do, has received final designation as a Regulatory Free Zone following deliberation by the Regulatory Free Zone Committee of the Ministry of SMEs and Startups.

The national government introduced interregional Regulatory Free Zones as a national policy initiative to move beyond demonstration projects focused on individual technologies within a single region and foster new-industry value chains by connecting industrial bases and demonstration environments across regions.

The New Marine Leisure Regulatory Free Zone, jointly planned by Busan Metropolitan City and Gyeongsangbuk-do, covers a total area of 682.23 km², including Pohang in Gyeongbuk and the waters from Cheongsapo to Busan New Port in Busan. The designation period runs from September 1, 2026, through December 31, 2030.

Within the zone, new marine leisure technologies will be tested in actual marine environments, including autonomous leisure vessels, artificial intelligence-based marine safety control systems, unmanned surface rescue robots, underwater drones and unmanned surface vessels.

The designation opens the way for demonstrations aimed at enabling current marine leisure regulations, which are premised on human operation, to accommodate autonomous and unmanned technologies.

A regulatory exemption will be applied to the requirement under the Water Leisure Safety Act that a licensed individual directly operate a powered water leisure craft. Under the exemption, an autonomous navigation system that meets specified safety standards will be recognized as the operating entity, easing the obligation for the license holder to directly operate the craft.

This will enable real-sea testing of autonomous navigation technologies such as autonomous piloting, collision avoidance, and automatic deceleration and stopping.

In addition, unmanned surface rescue robots will be recognized as lifesaving entities, while crew requirements under the Ship Personnel Act for unmanned surface vessels and underwater drones will be temporarily relaxed. In total, four regulatory exemptions under the jurisdiction of the Ministry of Oceans and Fisheries and the Korea Coast Guard will be applied.

Busan and Gyeongbuk will leverage the respective strengths of each region to establish a full-cycle marine leisure industry ecosystem spanning technology development, demonstration and commercialization.

Busan will use its shipbuilding, maritime and marine ICT industrial base, together with real-world marine service environments such as ports, marinas and beaches, to demonstrate technologies including AI-based maritime object recognition and risk assessment, integrated coastal and port safety control based on ultra-precise positioning information, and marine environmental and safety monitoring using underwater drones and unmanned surface vessels. These demonstrations will verify the technologies’ applicability and commercial viability in real-world settings.

Gyeongbuk will draw on research institutions in the robotics and marine mobility fields and natural offshore waters to develop core technologies such as autonomous navigation and underwater robotics, manufacture equipment, and conduct basic performance and safety verification.

Cross-demonstration in different marine environments is expected to enhance the reliability and safety of the technologies and contribute to the development of standard models and safety standards in autonomous navigation, unmanned rescue and smart marine safety.

The zone is also expected to generate growth and commercialization benefits for Busan’s marine industry.

According to the Korea Maritime Institute, consumer spending in Busan’s marine tourism market reached KRW 6.3796 trillion in 2024, the highest level nationwide, while the city is home to approximately 30,000 marine industry businesses employing more than 160,000 people.

Building on this industrial and market foundation, Busan Metropolitan City plans to apply autonomous navigation, underwater robotics and AI technologies demonstrated within the zone to real-world locations such as ports, marinas and beaches, thereby promoting commercialization and market entry by participating companies.

Through these efforts, the City intends to drive growth in the regional marine industry by attracting investment and creating jobs, while also expanding the market for preventive marine safety services that use AI-based risk detection, automatic avoidance and rescue technologies.

Going forward, Busan Metropolitan City will jointly utilize demonstration infrastructure and data with Gyeongsangbuk-do and, based on the demonstration results, actively support improvements to relevant laws, regulations and safety standards, as well as the commercialization efforts of participating companies.

Mayor Chun Jae-soo said, “The designation of this Regulatory Free Zone marks a starting point for creating a new market for the future marine leisure industry by connecting Busan’s marine industry and port infrastructure with Gyeongbuk’s research and development capabilities.”

“We will combine autonomous navigation, AI and robotics technologies with Busan’s shipbuilding and marine industries to establish Busan as a global leader in marine mobility,” he added.