History of Korean Exports: Masan Free Trade Zone Designated as National Industrial Complex

Masan Free Trade Zone

On the 9th, the Ministry of Trade, Industry and Energy announced that the partial amendment bill to the Act on Designation and Operation of Free Trade Zones (hereinafter referred to as the Free Trade Zone Act), which includes the conversion of Masan Free Trade Zone into a national industrial complex, has passed the plenary session of the National Assembly.

Masan Free Trade Zone is Korea's first foreign investment zone designated as an export free trade zone under the Export Free Trade Zone Installation Act (revised to the Act on Designation and Operation of Free Trade Zones in 2020) in 1970, before the concept of industrial complexes was introduced. It accounted for more than 4% of Korea's exports in the 1970s to 1990s and has continuously contributed to exports and the national economy.

However, among the seven free trade zones nationwide, it was the only one not designated as an industrial complex, suffering disadvantages such as the application of a low building-to-land ratio and exclusion from national support projects.

With the passage of this bill, if Masan Free Trade Zone is newly designated as a national industrial complex, it will be eligible for national support projects, and the building-to-land ratio will be raised from the existing 70% to 80%, enabling tenant companies to expand factories and production lines.

The Ministry of Trade, Industry and Energy stated, "With the passage of this amendment to the Free Trade Zone Act, Masan Free Trade Zone will be converted from a general industrial area to a national industrial complex, and facility and equipment investments worth approximately 45 billion KRW by tenant companies are expected." It added, "It will become easier to promote various support projects targeting industrial complexes, such as infrastructure expansion and improvement of workers' living facilities, further expanding its role as a national export forward base."

The amendment to the Free Trade Zone Act is scheduled to be promulgated after government transmission and approval by the State Council, and will be fully implemented one month after promulgation.

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