Busan Port and Incheon Airport Designated as Expanded Free Trade Zones

Ministry of Industry: "Attracting 50 Companies... 1 Trillion Won Investment, Creating 22,000 Jobs"

[Image source=Yonhap News]

[Asia Economy Reporter Moon Chaeseok] The government has expanded the designation of Incheon Airport and Busan Port Free Trade Zones to secure a logistics hub in Northeast Asia and officially announced this.

On the 6th, the Ministry of Trade, Industry and Energy stated that after receiving applications from the Ministry of Land, Infrastructure and Transport and the Ministry of Oceans and Fisheries, and consulting with related ministries, the expansion designation was made.

First, the 320,000㎡ third-phase logistics complex of Incheon Airport will be expanded as a free trade zone. This space is being developed to attract new growth air cargo such as e-commerce and fresh cargo.

The 2.83 million㎡ area including the west and south container terminals of Busan New Port and the nearby hinterland will also be expanded. This area is being developed to create added value by attracting transshipment cargo.

In the expanded third-phase logistics complex of Incheon Airport, companies attracting rapidly growing new growth cargo and transshipment cargo, Global Delivery Centers (GDC), and multinational corporations will be prioritized.

Busan Port will be developed as a high value-added logistics activity hub. Reflecting the characteristics of the port, transshipment cargo and consignment processing companies will be recruited.

From the end of this year, tenant companies will be gathered. Incheon Airport plans to recruit tenant companies from the end of this year, and Busan Port will start recruiting from the hinterland of the west container terminal from early next year.

The government provides free manufacturing, logistics distribution, and trade activities in the free trade zones, affordable rents at 10-30% of surrounding market prices, and customs suspension benefits.

Rent discounts are also offered to foreign-invested companies above a certain scale. Companies investing over 5 million USD receive a 50% rent reduction for 3 years, and those investing over 10 million USD receive a 50% reduction for 5 years.

An Seong-il, head of the Economic Free Zone Planning Division at the Ministry of Trade, Industry and Energy, said, "Through this expansion designation, it is expected to attract 50 global logistics and manufacturing companies, invest 1 trillion won, and create 22,000 jobs."

He added, "We hope that the expansion of the free trade zones will revitalize the local economy, which has been struggling due to the recent impact of the novel coronavirus (COVID-19)."

This content was produced with the assistance of AI translation services.