Incheon Free Economic Zone Foreign Investment $730 Million... Exceeding Target Amid COVID-19 Impact

33.8% Increase Compared to 2020
Bio·Healthcare Industry Accounts for Half

Aerial view of Songdo International City in Incheon Free Economic Zone [Photo provided by Incheon Free Economic Zone Authority]

[Asia Economy Reporter Park Hyesook] Despite the prolonged difficulties caused by the COVID-19 pandemic, foreign investment in the Incheon Free Economic Zone (IFEZ) exceeded its target. In particular, investment attraction performance in the bio and healthcare industries was strong, befitting its ambition to become a global bio hub city.

According to the Incheon Free Economic Zone Authority on the 4th, last year’s foreign direct investment (FDI) reported amount for IFEZ was $738.55 million (approximately 880 billion KRW), surpassing the target of $600 million and achieving 123%. This represents a 33.8% increase compared to the reported amount in 2020 ($551.74 million), exceeding the target for the first time in two years since before COVID-19 in 2019.

This performance of IFEZ accounts for more than half, 55%, of Incheon city’s total FDI reported amount of $1.33496 billion. Additionally, the cumulative reported amount for IFEZ reached $14.06545 billion, representing 72% of the nationwide cumulative reported amount for free economic zones, which stood at $19.0827 billion as of last November.

Among the total reported amount for IFEZ this year, $416.13 million, or 56%, was counted as new investment.

New investment companies include SL Pogen, which signed an investment contract with the Incheon Free Economic Zone Authority in August last year to invest in the construction of DNA vaccine research and manufacturing facilities, and Sartorius, a global biotechnology company that signed a memorandum of understanding (MOU) in November. Including these, the reported amount for the bio and healthcare industry accounted for 48.5%, nearly half of the total reported amount.

This is being positively received as it aligns with the 'Incheon City Bio Industry Promotion Strategy,' which aims to develop Incheon into a global bio-industry city by creating 170,000 jobs and training 14,000 professionals by 2030, as well as the 'Songdo Bio Cluster Expansion Plan' established by the Incheon Free Economic Zone Authority, which targets attracting 700 companies and creating 20,000 jobs by 2030.

Samsung Biologics in Songdo International City [Photo by Yonhap News]

Currently, Songdo International City in the Incheon Free Economic Zone has a biopharmaceutical production capacity of 880,000 liters, the largest for a single city in the world. With the move-in of SK Bioscience, which signed a contract with the Incheon Free Economic Zone Authority in December last year, and the completion of Samsung Biologics’ Plant 4 and Celltrion’s Plant 3, production capacity is expected to increase further.

Besides the bio and healthcare industries, the distribution and logistics industry recorded $190.53 million (25.8%) with projects such as the expansion of the DHL Incheon Airport cargo terminal and the construction of the Schenker global shipping center. The tourism and leisure industry recorded $123.15 million (16.7%) through additional investments in Solair Marine Resort and Inspire Complex Resort. The parts and materials industry and ICT convergence industry, which secured additional contracts for mobility parts production facilities with Daedong Door, showed results of $21.61 million (2.9%).

The Incheon Free Economic Zone Authority analyzed that these achievements were the result of actively engaging in non-face-to-face investment attraction activities despite the ongoing spread of COVID-19.

They held a web seminar with San Bernardino County in the United States, produced and utilized IR (Investor Relations) videos to revitalize bio and healthcare investment attraction, and hosted the International Korean Brain Neuroscience Conference to promote Songdo’s bio industry externally, among various investment attraction activities.

Lee Won-jae, head of the Incheon Free Economic Zone Authority, said, "Although there were many difficulties due to the uncertain investment environment caused by the prolonged COVID-19 pandemic, we achieved results through diversified investment attraction efforts, such as inducing additional investments from resident companies. This year, we will put more effort into selective and diversified investment attraction activities that can create synergy with existing clusters."

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