South Korea weighs faster AI data-center permits and rental tax support
South Korea is considering parallel permitting and tax support for rental-based AI data centers. Science minister Bae Kyung-hoon outlined the proposals at a parliamentary audit. Ministries remain divided over the electricity-grid assessment exemption threshold outside the capital region, while the tax treatment of rented infrastructure is being discussed with fiscal authorities.
Artificial Intelligence··Morning
Bae backs parallel permit reviews
South Korea is discussing faster permits for artificial-intelligence data centers and tax support for rental-based facilities. Science and information and communication technology minister Bae Kyung-hoon outlined the proposals at a parliamentary audit on 23 October.[1], [2]
Bae supported handling permits together and in parallel from the preliminary-review stage. He also placed new construction and expansion alongside cooperation with local communities and regional industry. The discussion concerns proposed changes to the approval process for facilities.[1]
Ministries differ over the grid-assessment threshold
Outside the capital region, ministries are weighing different capacity thresholds for exemption from electricity-grid impact assessments. Climate authorities are considering 50 MW, while the science ministry proposes 100 MW. Bae said companies had requested higher thresholds and that talks with climate officials continued. He backed the science ministry’s proposal; the exemption limit remained under discussion.[1]
Rental infrastructure faces a tax-support gap
The audit also addressed businesses that rent data-center facilities or graphics processors. Classifying those activities as real-estate leasing could exclude them from tax credits. Bae said he would discuss that gap with fiscal authorities. The government’s earlier plan targeted 8.4 GW of data-center capacity and 550 trillion won in private investment by 2029. Those are previous targets, alongside continuing interministerial work and implementation meetings with companies.[1]
