S. Korea decides to ease factory zoning rules

SEOUL, Oct. 30 (Yonhap) -- South Korea decided Thursday to soften restrictions on the construction of factories in and around Seoul as part of efforts to help create more jobs and stimulate the slumping economy.

The decision comes after big businesses called for the easing of rules on factory
construction in the capital area, which the government put in place to maintain
"balanced regional development."
Starting next March, companies including such conglomerates as Samsung Group and
LG Group will be allowed to build or expand their factories on land designated
for industrial areas in and around Seoul.
The amount of land subject to development restrictions will also be raised from
the current 200 square meters to 500 square meters. Currently, South Korea sets
an aggregate amount of land size available for factory construction in Seoul and
its adjacent area every year and restricts building new factories if they exceed
that limit.
Experts say the eased regulations are expected to induce additional investments,
though some fear they could spark an imbalance in national development.
The move is in line with the Lee Myung-bak government's efforts to provide a
"business friendly" environment by reducing taxes and easing regulations deemed
to be hampering corporate activities.