South Korea will lower entry barriers to its free economic zones and remove regulations on profit reinvestment, the trade ministry said Monday.

Following a special meeting over the weekend, the Ministry of Trade, Industry and Energy said firms will be allowed to set up business in South Korea’s FEZs by entering into a contract with the zone operators. Under the current regulation, the firms must have prior approval from the ministry.

In all, the government will eliminate 17 of the existing 58 regulations and reform 11 others over the next four years, the ministry said.

“The meeting sought to review all related regulations from scratch under the principle that all unnecessary regulations and procedures that hinder the participation of new businesses or place excessive burdens on firms must be removed,” it said in a press release.

Physical entry into FEZs will also become easier as the government plans to allow visitors into the FEZs without a pass.

This will help promote transit and processing trade at FEZs, the ministry said.

Regulations subject to elimination include one that currently requires firms operating in FEZs to reinvest at least 25 percent of all their profits and give another 25 percent of profits to the local government. (Yonhap)