The Busan-Jinhae Free Economic Zone (hereinafter, BJFEZ) is strategically located at the heart of Northeast Asia and at the same time, the center of Korea’s southeastern industrial belt. BJFEZ is a specially designated area perfectly located to attract foreign businesses and multinational companies.
BJFEZ, adjoining Busan Port, is a regional and global hub for international businesses and logistics. Since the BJFEZ is situated along the European and North American trunk routes from Asia that have the largest traffic volume among the global shipping routes, it is logistically very competitive and it also retains the possibility to function as an ideal connection point for European Continental and Pacific Rim destinations.
Designated as an FEZ in October 2003 with a total area of 104.1km2 and started its operations in March in the following year, BJFEZ, through several times of changes of the development plans, now largely consists of five regions with an area of 82.3km2. The development area is 32.6km2.
As of now, the BJFEZ Authority sees noteworthy development progress status, with the completed seven districts, the six districts under construction status, and the seven districts under the planning status among all 20 districts, despite tough conditions of global economy and domestic construction economy.
Taking advantage of its hub capability of the marine logistics and the up-to-date component industries, BJFEZ has been differentiating its competitiveness over other local competitive FEZs towards becoming one of the world’s top logistics and business centers.
BJFEZ now expects the great development result of each of the five districts by 2020 – the New Port Area with an area of 4.6km2 as the world’s No.5 grade of harbor infrastructureequipped region; Jisa Area and Dudong Area with an area of 9.8km2 as hub of the global industry cluster and R&D in the sectors of shipbuilding, automotives, and machinery; the Undong Area with an area of 9.2km2 as hub of the tourism & industry and high value-added logistics; and the Myeongji Area with an area of 9.0km2 as a center of knowledge-based global businesses to support logistics companies and hightech industry and as a foreign worker-friendly area.
With a regard to investment attraction, the BJFEZ Authority since its opening successfully clinched a whopping investment volume accumulated to US$1.664bil. on a basis of FDI report criteria. By sector, new port construction sector of $402mil., harbor logistics sector of $124mil., high-tech industry sector of $1106mil., tourism & leisure sector of $12mil., and the education sector of $20mil.
When looking into the investment status of the harbor rear complex where from recently 58 companies operate within the new port area, in particular, the impressive new movement of building a system utilizing the global investment network is seen – the new pattern of joint investment movement between local companies and global companies based in Japan, Canada, China, and the USA is being created.
Such active steps toward investment attraction are simultaneously encouraging foreign investment in the hightech industry field. Especially, the districts in the Mieum and Nammoon exclusive for component material conspicuously help the Zone to attract the foreign investment. In the Mieum Foreign Investment Area, several global companies including German Bosch Rexroth Korea, Wilo Pump, Heganes, Geislinger, etc. already took up their respective locations and started operations.
And also, in the Namoom Foreign Investment Area, some other global companies including Tsubakimato Automotive Korea, Sondex korea, etc. started their respective operations making an atmosphere for further new candidate of foreign companies that are considering of rushing into the districts. According to BJFEZ Authority prospect based on real growth data, in the near future, the two districts are expected to gain reputation as places of global leading parts & material complex.
When the development of all districts are completed 10 years after this year, BJFEZ is firmly expected to grow into a new growth center in the southeast part of Korea with further growth potentiality and significant economic spread effect following. Also, once a total of 18 road infrastructures are completed, a new growth network would naturally be built, thus contributing to developing its new and upgraded status as a creative future-oriented new city.
For further boosting investment attraction within the FEZ, the BJFEZ Authority strategically selected four target industries – complex logistics, advanced transportation, machinery parts, and leisure & resorts.
The Authority believes it could see outstanding performance in investment attraction within a few years with leveraging the power of its own specialized advantages. After this year when the development plans in the Myeongji and Undong districts are visualized, potential remarkable investment attraction performance is anticipated.
• Busan-Jinhae Free Economic Zone Authority
38-26, Noksan-saneop 232-ro, Gangseo-gu, Busan, Korea
Tel: (82-51)979-5000 / (82-55)320-5000
Fax: (82-51)979-5029 / 5039
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