Will the Port Hinterland Area Be Left as Just a Cargo Handling and Storage Site... 'High Value-Added Industry' Must Be Fostered

Busan, Jeonnam, Gyeongnam South Coast Port Logistics City Council Joint Proposal for Legal and Institutional Improvements
Assemblyman Choi In-ho Reintroduces Amendment to the 'Free Trade Zone Designation and Operation Act' in the 21st National Assembly

[Asia Economy Yeongnam Reporting Headquarters Reporter Kim Yong-woo] Three metropolitan cities and provinces on the southern coast have decided to jointly promote legal and institutional improvements to foster high value-added port hinterland complexes (free trade zones).

On the 8th, Busan City, together with Jeollanam-do and Gyeongsangnam-do, jointly proposed legal and institutional improvement plans for creating an environment for high value-added port hinterland complexes to central government ministries and relevant standing committees of the National Assembly.

Busan Port, a representative domestic hub port, and Gwangyang Port in Jeonnam have been criticized for focusing on logistics functions such as cargo handling, transshipment, and storage relative to port cargo volume, while falling short in realizing various high value-added functions such as manufacturing and processing.

To address these issues, Busan City has been requesting the government since 2018 to allow agricultural and livestock product manufacturing and processing companies to enter free trade zones such as the New Busan Port.

Assemblyman Choi In-ho (Busan Saha-gap) introduced a bill to amend the “Act on Designation and Operation of Free Trade Zones” during the 20th National Assembly, which included easing entry regulations for agricultural and livestock product manufacturing and processing companies.

The bill was automatically discarded due to the expiration of the 20th National Assembly’s term, but Assemblyman Choi reintroduced it in June during the 21st National Assembly, and it is currently under review by the Industry, Trade, and Small and Medium Venture Business Committee.

Since June, Gyeongnam Province has also proposed joint responses at the level of the three southern coastal cities and provinces to promptly improve laws and systems by discovering additional legal and institutional improvement plans for diversifying and revitalizing logistics services in port hinterland complexes through meetings with the National Balanced Development Committee, Korea Customs Service, central government ministries, and related companies.

Following the signing of the “Southern Coast Win-Win Development Council Agreement” on July 31, the “Southern Coast Port Logistics City Council,” composed of the three cities and provinces, held consultations and adopted a joint proposal to revitalize high value-added port hinterland complexes.

The three cities and provinces jointly proposed improvements to related laws and systems, including ▲creating conditions for the entry of agricultural and livestock product manufacturing and processing industries, which are restricted in port hinterland complexes ▲relaxing entry standards for manufacturing industries ▲allowing flexible operation of complex industries combining manufacturing and logistics.

Byun Sung-wan, Acting Mayor of Busan, said, “With the improvement of relevant laws, Busan Port and Gwangyang Port are expected to become complex hubs for high value-added logistics, manufacturing, and processing, serving as a foundation for job creation and balanced regional development.”

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