South Korea Eases AIDC Approval Rules

Financial NewsFriday, October 23, 2026
South Korea Eases AIDC Approval Rules
  • •Government announces simpler AIDC permits and measures to support the domestic ecosystem
  • •Next year’s proposed budget allocates about 200 billion won for local technology development and testing
  • •AIDC special zones planned for the first half of next year will require community benefit plans

The South Korean government announced an “AI data center ecosystem support plan” on the 23rd at the second Regulatory Rationalization Committee meeting, chaired by President Lee Jae-myung at the Blue House guesthouse. The Ministry of Science and ICT said it would reduce approval burdens for building AI data centers, or AIDCs, and support domestic technology development and testing. Support will target three groups: AIDC developers, materials, components, equipment and solution companies, and communities hosting data centers.

The government plans to quickly prepare implementing regulations for the AIDC Industry Promotion Special Act, enacted in June. It will streamline procedures such as preliminary reviews and requests for revisions, and establish a dedicated help desk for difficulties during processing. Equipment that operates without on-site staff, including server rooms and cooling and power facilities, will be excluded when calculating building size. Companies have cited delays and burdens from procedures such as power system impact assessments, building permits, landscape reviews and traffic impact assessments, as well as facility rules they say do not fit data centers.

The ministry will launch new programs worth about 200 billion won under next year’s proposed government budget for domestic materials, components, equipment and solution companies. The programs will support local technology development and reliability testing, and the government plans a large AIDC cluster with technology testing facilities and commercial data centers. The stated aim is to help domestic companies verify reliability and build a foundation for competing in global markets. Industry representatives have said that because AIDCs must operate reliably 24 hours a day, companies need stronger technology, large-scale testing facilities and a record of actual commercial operations.

The government plans to designate AIDC special zones in the first half of next year and prepare guidance for cooperation between operators and local communities. A community benefit plan will be a required condition for special zones to receive fee reductions. The government says this is intended to improve local acceptance because data centers use community resources, including large sites and substantial power infrastructure. It will also work with local governments to create and distribute guidance for communication between operators and residents, addressing the lack of requirements and procedures for gathering residents’ views.

Ryu Je-myeong, the ministry’s second vice minister, said the government plans to issue an advance notice of proposed enforcement regulations at the end of this month, setting out specific directions for promoting the AIDC industry and easing regulations.