Free Trade Zone to Expand to 4 Million Pyeong by 2030

[Sejong=Asia Economy Reporter Kwon Haeyoung] The government has prepared detailed implementation plans to expand the site area for investment companies in free trade zones by 13.2 million㎡ by 2030 and to relax the eligibility criteria for resident companies in order to strengthen the competitiveness of free trade zones.

On the 28th, the Ministry of Trade, Industry and Energy held the '1st Free Trade Zone Policy Council' chaired by Vice Minister Park Jin-gyu, with participation from related ministries, metropolitan local governments, and management agencies, to discuss the detailed implementation plans of the 'Free Trade Zone 2030 Innovation Strategy.'

The goal of the innovation strategy implementation plan is to develop free trade zones by 2030 into 'advanced export and investment attraction hubs' and 'manufacturing and logistics convergence centers.'

According to the implementation plan, first, to select key industries and support corporate attraction, a 'Public-Private Joint FTZ Investment Attraction Support Group' will be formed regionally to select core key industries. Investment attraction will be pursued by utilizing the investment institutions' networks centered on these key industries.

Furthermore, to attract core key industries, considering the demand for key industry locations and conditions for supply of resident sites, an expansion of approximately 13.2 million㎡ (about 4 million pyeong) will be promoted by 2030. Currently, most FTZ areas have high occupancy rates, causing difficulties in securing sites for investment companies, but expanding the sites will enable active attraction activities. The Ministry of Trade, Industry and Energy conducted demand surveys with related ministries and management agencies regarding site expansion, and after feasibility reviews (by applicant institutions) and preliminary feasibility studies (by the Ministry of Economy and Finance), the designation will be decided through consultations with related agencies for the application cases.

In addition, through amendments to the Free Trade Zone Act, regulatory improvements that hinder corporate investment and improvements to the FTZ investment environment will be pursued. The amendment bill to relax restrictions on the entry of agricultural and livestock product manufacturing and processing industries recently passed the standing committee and follow-up measures are underway.

To attract regional advanced companies and returning companies, entry requirements will be significantly relaxed, and incentives such as acquisition tax and property tax reductions will be strengthened.

The Ministry of Trade, Industry and Energy will also support the growth of resident companies by establishing infrastructure such as innovation support centers and building an integrated FTZ homepage. Based on demand surveys, advanced standard factories will be constructed to enable the entry of technology innovation companies.

Moreover, based on a full survey of smart factories within FTZ areas and companies wishing to adopt them, support for the expansion of smart factories will be provided to 45 interested companies.

A regional export support consultative body will be newly established and operated, and a full survey of resident companies will be conducted to assist 51 interested companies with various export support projects.

Through the integration and linkage of the current 13 free trade zone management agencies' websites, integrated information will also be provided to resident companies, domestic and foreign investors, and others.

Vice Minister Park Jin-gyu said, "I ask for active support from related ministries and local governments so that the Free Trade Zone 2030 Innovation Strategy can be implemented without any setbacks and serve as a strong pillar for the regional economy and national exports."

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