Last Year, Free Trade Zone Exports Surpass 10 Billion Dollars for the First Time

[Sejong=Asia Economy Reporter Kwon Haeyoung] Last year, exports from Free Trade Zones (FTZ) exceeded 10 billion dollars for the first time.

The Ministry of Trade, Industry and Energy announced on the 23rd that exports by companies located in Free Trade Zones in 2021 totaled 10.94 billion dollars (approximately 13.05 trillion won), an increase of 89.6% compared to the previous year.

Since the first designation of Masan Export Free Zone in 1970, this is the first time that the total annual exports from all Free Trade Zones have surpassed 10 billion dollars. Exports from Free Trade Zones exceeded 300 million dollars in 1976, broke through 1.14 billion dollars in 1986, and surpassed 5.29 billion dollars in 2008.

Currently, there are a total of 13 Free Trade Zones in operation, including 7 industrial complex types, 5 port types, and 1 airport type.

Last year, exports from Free Trade Zones accounted for 1.7% of South Korea's total exports. This is an increase of 0.57 percentage points compared to one year ago and 1.35 percentage points compared to 2017.

By type, airport-type exports led the growth trend, increasing by 112% to 8.85 billion dollars, accounting for 80.9% of total Free Trade Zone exports. Industrial complex types increased by 31.5% to 1.98 billion dollars, and port types rose by 27% to 113 million dollars.

The significant increase in Free Trade Zone exports last year was due to the recovery of the manufacturing sector, including semiconductors and electrical and electronic products, as well as increased demand for COVID-19 related products.

The industrial complex type approached 2 billion dollars in exports for the first time in four years since 2017, driven by expanded exports of electrical and electronic products, automobiles, ship parts, and COVID-19 related quarantine products.

By region, six Free Trade Zones showed export growth: Gunsan (55.8%), Gimje (51.9%), Yulchon (40.5%), Masan (22.8%), Ulsan (18.5%), and Daebul (3%).

The airport type saw increased exports from semiconductor packaging and testing specialist companies due to the semiconductor boom, while the port type was driven by increased exports from wind turbine component companies and infant formula manufacturers in the Gwangyang Port Free Trade Zone.

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