Special City Authority Expanded...New Tech Startup Zones to Be Coordinated Directly with Central Ministries

Partial Amendment Bill to Special Measures Act on Venture Enterprise Promotion Passes Standing Committee
Yongin Special City Hall exterior.
Yongin Special City Hall exterior.

[Suwon Ilbo=Reporter Park No-hun] When designating new technology startup zones in universities or research institutions within Yongin Special City and three other special cities—Suwon, Goyang, and Changwon—the mayors of these special cities appear poised to secure additional authority to directly coordinate with the Minister of SMEs and Startups without going through metropolitan autonomous entities.

Yongin City announced on the 20th that a bill transferring authority for the "New Technology Startup Zone Designation Coordination" task, one of the special affairs in the Second Round of Decentralized Transfer of Local Authority, passed the National Assembly's standing committee (Committee on Commerce, Industry, Energy and SMEs and Startups) on September 7.

The Second Round of Decentralized Transfer involves amendments to laws necessary for the transfer of national authority to local governments, organized by each ministry, and includes special city tasks (3 functions, 21 unit tasks).

The bill deliberated in the standing committee this time is the "Partial Amendment Bill to the Special Measures Act on Venture Enterprise Promotion," and it is scheduled to undergo review by the Legislation and Judiciary Committee before being submitted to a plenary session of the National Assembly.

Once the bill passes the National Assembly plenary and the "New Technology Startup Zone Designation Coordination" task is transferred, the heads of universities or research institutions will have the authority granted to special city mayors to coordinate with the Minister of SMEs and Startups when designating new technology startup zones of 10,000 square meters or more in certain areas of owned school grounds or sites.

By having the government and special cities coordinate directly without going through metropolitan autonomous entities, expansion of autonomous decentralization and fostering of new technology startups tailored to regional characteristics become possible.

New technology startup zones, designated to promote new technology startups, are granted special provisions such as reductions in acquisition taxes and property taxes on the relevant real estate when certain areas within universities or research institutions are designated.

Yongin Special City Mayor Lee Sang-il stated, "Centered on the Special Cities Mayors Council, we will systematically pursue securing special city authority to lead change and development in each special city," and added, "We will prioritize improving residents' quality of life by securing various special authority and push this forward."

Meanwhile, among the Second Round of Decentralized Transfer special affairs, "Registration, Cancellation and Support of Nonprofit Private Organizations" and "Designation and Evaluation of Tourism Special Zones" each completed amendments by relevant ministries and were promulgated in April and May respectively, with implementation scheduled for next year.

The city, together with the Special Cities Mayors Council, has already conducted working-level meetings with the Ministry of the Interior and Safety in August and meetings with Gyeonggi Province in September to facilitate smooth transfer of special city transferred tasks (8 functions, 141 unit tasks) for which legislation has been finalized.

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