Han Seong-sook, the prime minister, delivers opening remarks at an economic associations and groups regulatory rationalization roundtable at the Korea Chamber of Commerce and Industry in Jung-gu, Seoul, on the morning of the 28th. /Courtesy of News1

There had been a problem that the criteria were unclear under the Building Act on whether to view energy storage systems (ESS) as buildings, temporary buildings, or structures. Local governments had made different judgments, and when classified as buildings, the permitting process was complicated, putting a heavy burden on businesses. In response, the Ministry of Climate, Energy and Environment and the Ministry of Land, Infrastructure and Transport jointly decided to prepare and distribute by next month legal classification guidelines that local governments can follow. A plan to classify sealed ESS units with no human access as structures is under strong review.

High-pressure gas storage facilities saw on-site confusion because government ministries had different rules on door-opening directions. The Ministry of Trade, Industry and Resources' high-pressure gas safety standards required inward-opening doors to handle internal pressure in the event of a leak, while the Ministry of Employment and Labor (MOEL)'s Industrial Safety and Health Rules required outward-opening emergency exits for workers' quick escape. The government decided to clarify the standard to allow inward-opening doors for high-pressure gas storage facilities without resident workers.

The Office for Government Policy Coordination's public-private Joint Task Force for Regulatory Rationalization on the 28th announced 10 key regulatory improvement tasks containing these measures at a meeting with economic associations and groups held at the Korea Chamber of Commerce and Industry in Jung-gu, Seoul, chaired by Prime Minister Han Seong-sook. The event was attended by 20 people, including seven heads of economic organizations and 13 government official.

Hydrogen products for research and development had also faced delays because they were subject to the same manufacturing permits and certification standards as commercial products under the Hydrogen Act, but separate safety standards for research and development will be prepared by 2027. Parking robots, which had been classified only as mechanical parking devices and therefore could not be installed in multifamily housing, will be allowed with revisions to the relevant rules.

Regulations on electric vehicle batteries will also be overhauled. The current Motor Vehicle Management Act requires vehicles to be registered only as a single unit without distinguishing between the body and the battery, leaving no way to register ownership of the battery separately. As a result, it has been difficult to pursue new business models in which battery manufacturers or leasing firms retain ownership of the battery and sell only the vehicle body to buyers, or in which batteries are provided via subscription or swaps (leases). The government plans to establish a制度 to allow separate registration of ownership of the body and the battery, with the aim of reducing the initial cost of purchasing EVs and expanding adoption through battery subscription and lease businesses.

Additional proposals from economic groups also continued at the meeting. The Korea Enterprises Federation requested that the law clearly state that high-level management decisions, such as profit-linked bonus payments, are not subjects of labor disputes or collective bargaining. The Korea Chamber of Commerce and Industry proposed using mega special zones as bold regulatory test beds, and The Federation of Korean Industries asked for the creation of favorable investment conditions, noting that one out of four of the top 500 corporations is considering expanding regional investment. The Korea Federation of Small and Medium Enterprises requested flexible criteria for the supply price indexation system, and the Korea Venture Business Association proposed expanding tax support, including installment payment and tax deferral for restricted stock units (RSU).

The government will additionally accept core regulatory improvement proposals in the third quarter and will institutionalize communication with economic associations and groups to continuously share progress.

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