Vice Minister Jang Young-jin "Actively Promoting Expansion of Economic Free Zones"

Central-Local Cooperation Meeting on Investment and Export Expansion in Gyeongja District on the 31st
Listening to Investment and Export Companies' Requests

Jang Young-jin, the 1st Vice Minister of the Ministry of Trade, Industry and Energy, stated, “To foster investment and export regional hubs, we will actively promote the expansion of Economic Free Zones based on private and regional demand.”

Vice Minister Jang made these remarks on the 31st at the Korea Chamber of Commerce and Industry during the ‘Central-Local Cooperation Meeting for Expanding Investment and Exports in Economic Free Zones.’ The meeting was chaired by the Vice Minister and attended by heads of nine Economic Free Zone authorities nationwide and resident companies in the Economic Free Zones.

Economic Free Zones are special economic zones introduced to attract foreign investment through the creation of global complex cities. Since their introduction, they have attracted 6.5% of domestic FDI (Foreign Direct Investment) (a cumulative $21.5 billion as of 2022) and account for 4% of domestic exports (29.1 trillion KRW as of 2021).

[Image source=Yonhap News]

In his opening remarks, Vice Minister Jang said, “We are mobilizing all government capabilities to achieve a turnaround in exports and expand corporate investment,” urging the Economic Free Zone authorities to play an active role.

Following this, companies attending the meeting proposed solutions to difficulties in investment and exports. Regarding investment, Lotte Biologics requested expedited administrative procedures to complete land contracts by August to commence factory construction by the end of the year.

Samsung Biologics requested the rapid establishment of infrastructure to ensure power and water supply by October for the commissioning of its 5th plant. Subsequently, Eco Chemical and Pam Continental Chemicals requested the relaxation of restrictions on industrial complex resident industries, and Living Care requested the issuance of renewable energy supply certificates for thermoelectric power generation. Korea East-West Power proposed lifting the exclusive foreign investment area restriction (49,000㎡) in Economic Free Zones to facilitate the establishment of a green hydrogen demonstration complex and attract domestic hydrogen companies.

After the investment companies’ presentations, export companies proposed support for export certification and registration procedures and hedging support for SMEs against foreign exchange risks.

In particular, Calt Logistics noted that a significant portion of the leasable area (150,000㎡) in the port hinterland complex is already in use, causing difficulties in securing rental land, and requested an expansion of the leasable area criteria to enable the construction of new logistics centers to support export SMEs and mid-sized companies.

Vice Minister Jang then mentioned the recent development rate of Economic Free Zones approaching 90% and the expanding demand for designation of Economic Free Zones. He stated, “To foster them as investment and export regional hubs, we will actively promote the expansion of Economic Free Zones based on private and regional demand.” He also pledged to proceed smoothly with amendments to the Economic Free Zone Act to significantly delegate development plan modification authority to local governments by the end of the year.

Going forward, the Ministry of Trade, Industry and Energy plans to form an Economic Free Zone Investment and Export Support Task Force (TF) composed of Economic Free Zone authorities, the One-Stop Export Order Support Group, and KOTRA, and will tour Economic Free Zones to identify and resolve investment and export difficulties.

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