Problem

Special economic zones (SEZ) have been instrumental in driving South Korea's rapid industrial growth over the past several decades, significantly contributing to the country's social and economic growth. However, this growth has also contributed to severe environmental degradation and public health issues. Industrial complexes became significant sources of pollution in the country, leading to public backlash and legal disputes over operational damages. The urgency to address these challenges led the Korean government to introduce environmental management measures following the United Nations Rio+20 Conference in 2012.  

In response, the National Eco-Industrial Park (EIP) program was launched in 2003 by the Korean National Cleaner Production Center (KNCPC) and the Ministry of Trade, Industry, and Economy (MOTIE). Despite its goals of harmonising industrial development with environmental sustainability, the program’s top-down implementation initially failed to attract private sector participation, resulting in limited success.  

Responses  

A strategic overhaul by the Korea Industrial Complex Corporation (KICOX) in 2005 revitalised the EIP program. KICOX adopted a business-centric approach. KICOX actively engaged with local experts, networks, and resident companies in ICs to ensure active participation and collaboration in setting specific goals through 2005 to 2019. By 2015, KICOX had received 595 project proposals, funding 388 for research and development and constructing 197.

The program's impact was reportedly significant: 6.48 million tons of CO₂ and 1.09 million tons of toxic gas reductions were achieved from 2005 to 2014. Economic benefits totaled KRW 1,848 billion (USD 1.68 billion) through resource savings and by-product sales, while R&D investments spurred innovation with 56 new patents and 100 pending patents. Moreover, the program created 848 jobs and fostered technology development. 

Find out more: Global Green Growth Institute