The South Korean government has designated seven regulation-free zones to allow the testing of innovative technologies and fostering of new industries.

The top decision-making committee for regulation-free zone designations, headed by Prime Minister Lee Nak-yon, on Tuesday announced the zones would be hosted in the cities of Daegu, Busan, Sejong and the provinces of Gangwon, South Jeolla, North Chungcheong and North Gyeongsang.

The zones will specialize in the areas of digital healthcare, electromobility, battery recycling, blockchain, and automous driving while opening doors to telemedicine, the use of digitized local currencies and the operation of autonomous buses.

Businesses operating in the designated zones will be exempt from regulations when developing and testing new technologies for two years, with the possibility of a two year extension.

The central government plans to offer support for research and development, patents, overseas expansion and various tax incentives.

Local governments expect to attract 400 businesses to launch projects in the seven zones, create three-thousand-500 jobs and generate sales of 700 billion won over the next four to five years.