Expansion of Busan Port Free Trade Zone Designated... 2.83 Million ㎡ Added to Terminal and Port Hinterland Complex

[Sejong=Asia Economy Reporter Joo Sang-don] The Ministry of Oceans and Fisheries announced on the 6th that the Busan Port New Port container terminal and the 2.83 million㎡ port hinterland will be expanded and designated as a free trade zone on the 7th.

Accordingly, the free trade zone of Busan Port will be expanded to a total area of 12.2 million㎡, including the existing Busan-Jinhae area of 7.97 million㎡, Yongdang 1.24 million㎡, Namhang 30,000㎡, and Gamcheon 130,000㎡. This is the largest scale among port-type free trade zones.

When designated as a free trade zone, free manufacturing, logistics, distribution, and trade activities are guaranteed, and resident companies receive benefits such as low rent and deferred customs duties. The annual usage fee for state-owned property is at least 5% of the publicly announced land price, but for free trade zones, it is at the level of 1 to 3%. In addition, foreign-invested companies with an investment scale of over USD 5 million can receive a 50% rent reduction for 3 years, and those with over USD 10 million can receive a 50% rent reduction for 5 years.

According to the Ministry of Oceans and Fisheries, once the container terminal in the newly expanded free trade zone opens, it is expected to handle about 4.2 million TEUs of cargo annually. It is also expected to create about 1,200 new jobs. Furthermore, in the port hinterland, about 35 logistics and manufacturing companies will be attracted, resulting in approximately 580 billion KRW in private investment, the creation of about 2,500 jobs, and the handling of about 1.3 million TEUs of cargo annually.

Following the expansion designation of the Busan Port free trade zone, the Ministry of Oceans and Fisheries plans to announce the rent fees in June this year in consultation with the Ministry of Economy and Finance. Starting next year, global excellent logistics and manufacturing companies will be gradually settled beginning with the container terminal hinterland.

In particular, according to the 'Port Hinterland Activation Plan' announced in March this year, some of the newly expanded hinterland areas will be designated as specialized zones for transshipment cargo and entrusted processing industries according to the characteristics of Busan Port, aiming to develop Busan Port as a high value-added logistics activity hub.

Kim Jun-seok, Director of the Shipping and Logistics Bureau at the Ministry of Oceans and Fisheries, said, "Through this expansion designation of the free trade zone, Busan Port is expected to establish itself as a world-class complex logistics hub and industrial space," and added, "We will continue to expand free trade zones in ports and hinterlands to contribute to the revitalization of regional and national economies."

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