Assemblyman Kim Jung-jae Welcomes Pohang’s Selection as ‘Global Innovation Regulatory Free Zone’!

National Assembly Member Kim Jung-jae (Source: Courtesy of the Office of Assembly Member Kim Jung-jae)

• Ministry of SMEs and Startups designates Pohang and its coastal waters (Igari Port – Yangpo Port) as the ‘Gyeongbuk K-Next Generation Electric Propulsion Vessel Global Innovation Regulatory-Free Special Zone’
• Assemblyman Kim Jeong-jae: “We will make Pohang a hub city for eco-friendly marine mobility based on Pohang’s secondary battery and marine industries.”

(Reporter Kim Min-jeong)= Representative Kim Jung-jae of the People Power Party (Pohang Buk-gu) expressed his welcome regarding the Ministry of SMEs and Startups’ designation of the Pohang area as the “Gyeongbuk K-Next-Generation Electric Propulsion Vessel Global Innovation Regulatory-Free Special Zone,” stating, “Pohang has laid a new foundation to lead the eco-friendly marine mobility industry.”

With this special zone designation, a demonstration project to convert small vessels and near-shore fishing boats into electric propulsion vessels will be launched in earnest in Pohang City and its coastal waters. The project will run from July 2026 to December 2030 and is scheduled to be implemented on a scale of 19.7 billion KRW (11.5 billion KRW in state funds, 1.9 billion KRW in provincial funds, 4.6 billion KRW in municipal funds, and 1.7 billion KRW in private investment).

With this special zone designation, Pohang will proceed with a demonstration project to convert small diesel vessels, including aging small boats and near-shore fishing boats, into electric propulsion vessels. Through this demonstration, it is expected that the design of electric propulsion systems for ships, the manufacturing of battery systems and key equipment, sea trials, and the verification of safety and operational performance will become possible. By pursuing the recycling of aging vessels in collaboration with demonstration institutions and companies in Northern Europe, such as Iceland, the project also aims to expand into the global market for eco-friendly ships.

Furthermore, through regulatory exemptions, the electric propulsion compartment for the vessels subject to the demonstration will be excluded from gross tonnage calculations, and regulations regarding the installation of ship batteries will be relaxed.

In particular, as Pohang is a city equipped with both a foundation for the secondary battery materials and components industry and marine industry infrastructure, the designation of this special zone is expected to serve as an opportunity to expand the region’s industrial base into the field of eco-friendly marine mobility.

If the demonstration of electric propulsion vessels is successfully implemented, significant ripple effects are anticipated for the local economy, including the alleviation of fuel cost burdens for fishermen, the growth of companies in the ship equipment and modification sectors, and the establishment of a foundation for the overseas expansion of related technologies. Representative Kim Jung-jae has been in close communication with the Ministry of SMEs and Startups, Gyeongsangbuk-do, and Pohang City, consistently explaining Pohang’s foundation for the secondary battery industry, its marine industry infrastructure, and the necessity of demonstrating electric propulsion vessels, while requesting the designation of a special zone.

In particular, he has continuously urged relevant ministries to foster the electric propulsion vessel industry as a new future growth engine for the region, based on Pohang’s competitiveness in the battery industry and its conditions for demonstration in coastal waters.

Representative Kim stated, “This special zone designation is an important opportunity to expand Pohang’s secondary battery industry foundation into new marine industries,” adding, “I will actively support the city at the parliamentary level so that Pohang can grow into a hub for eco-friendly marine mobility, encompassing technology development, demonstration, certification, and commercialization of electric propulsion vessels.”

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