Three More Free Economic Zones Picked

Three More Free Economic Zones Picked

By Kim Hyun-cheol
Staff Reporter

The government designated three more sites to develop into free economic zones (FEZs) Friday as part of efforts to attract more foreign investment.

A western coastal area, and zones in North Jeolla Province, and Daegu, North Gyeongsang Province were newly named as strategic hubs to revive the economy, the Ministry of Knowledge Economy said.

The area on the west coast includes Pyeongtaek, Gyeonggi Province and Dangjin, South Chungcheong Province, and will be developed into a center for global cooperation to compete with eastern Chinese economic districts on the opposite side of the Yellow Sea.

The Saemangeum-Gunsan zone in North Jeolla Province, to be established on a vast reclamation site, is to attract businesses for future industries and tourism.

The Daegu-North Gyeongsang area, the only inland FEZ, will specialize in information technology, machinery parts production, and the textile industry as well as medical and educational services.

The new FEZs will also be test beds for drawing foreign interests, capitalizing on their eligibility for building foreign facilities such as schools and hospitals, prior to nationwide deregulation.

Seoul officials hope that the new FEZs will serve to attract more inbound investment, however, the three existing FEZs are underutilized critics note, raising skepticism over the new designations.

The three in operation are in Incheon, Busan-Jinhae and Gwangyang, South Jeolla Province.

The government also announced a new regional development plan, in which six local specialized districts were designated including a water sports district in Chungju, North Chungcheong Province and a global education district in Cheonan, South Chungcheong Province.

hckim@koreatimes.co.kr


Opinion
Necessary factors for New FEZ

Professor told us about FEZ. FEZ means Free Economic Zones in Korea. Korea has three FEZ. These are Incheon, Kwangyang, and Jinhae/Busan. Korean government made it for get more investment from other countries. However, it has not too much impact in Korea. Professor showed an example that is Incheon. Korean government spends much money for this project. But, this project is spoiled by Korean wealthy people. They already invest much money there, and wait to sell this area high price. It prevents foreign investors.

This article is about new FEZ. I think this project will be speciallized. If it is same with last one, it will be a failed. Therefore, they should focus on new rules and benefits.
First of all, Korean assembly makes new law for this project. This law gives more insentives for foreigner. It is related with price. Foreign investors wants low price. Examples of this rule are land price cutting and tax free or low tax.

Second, infra is very important. 2 over 3 new zones are located near a harbor. However, it is not enough. Foreign investor needs cheep express way and convinience facilities like a park and a mall. Especially, Daegu area has only one airport and no port. If they want to import lots of things, they bring it from Pohang or Ulsan. However, Pohang new harvor is not completed.

Third, Korean citizens change their mind. They don’t like other cultures. For the globalization, cultural problem is the most important topic. Particularly, New FEZs, West see and Gunsan are located near China. Therefore, we need to understand more about china culture. Some of Korean hates China. They complain about Chinese prodcuts. But, their products are cheap and useful. No one can ignore China. Especially, Korea is the nearest country is China. We should consider it.

In a conclusion, FEZ is a Korean new strategy. For this project, Seoul spends lots of money. The most important one is efficiency. If we can’t give any profits for foreign, they don’t want to invest even a penny. Korea should make perfect plan, and perfect mind. It is an only way to survive in modern global marekt.

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Article from Korean Times, 080426
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