'Dramatic Transformation' in Busan-Jinhae Free Economic Zone as Global Logistics Companies Flock to Invest

Leap Toward a Global Logistics Hub: ‘BJFEZ Jinhae’
Launch of Task Force Drives Strategic Growth Platform

The Jinhae area of the Busan-Jinhae Free Economic Zone is undergoing a dramatic transformation.

As domestic and international logistics companies continue to invest in the previously stagnant port hinterland, the area is emerging as a logistics hub for Northeast Asia. Most of these investments are not just simple agreements but have progressed to the stages of land acquisition, construction, and operation, making them actionable investments.

This year, the Busan-Jinhae Free Economic Zone Authority has successfully attracted investments from global logistics companies. In October, it signed an investment agreement worth 180 billion won with Hyundai Glovis, under which a logistics center will be built on a 94,938-square-meter site in the Jinhae Ungdong Back Area Phase 2, with completion targeted for 2027. This is expected to mark a turning point for the Busan New Port hinterland, shifting its focus from simple storage to a high value-added integrated logistics hub.

Busanjin-Hae Economic Free Zone Ungdong Back Area Phase 2.

In June, a groundbreaking ceremony was held for LX Pantos’s global eco-friendly logistics center in the West Container Back Area of the Ungdong District. LX Pantos is constructing a state-of-the-art, eco-friendly logistics center on a 125,000-square-meter site, aiming for completion by the end of 2026. This project includes 24.7 million dollars (33.5 billion won) in foreign direct investment and is expected to total 100 billion won in investment, creating 188 new jobs. The center will integrate sea, air, and rail logistics, serving as a global logistics hub that concentrates smart logistics services.

In April, an investment agreement worth 10 billion won was signed with India’s Allcargo UL Terminal, resulting in the opening of a new facility on a 34,774-square-meter site in the Ungdong Back Area. With an additional 19 billion won invested, the total investment amounts to 29 billion won, establishing a global integrated logistics center.

In March, the Ministry of Economy and Finance finalized tax reductions for Naigai Busan Logistics Center’s 26 billion won investment. The cold and refrigerated logistics center, established on a 56,846-square-meter site, is expected to become a Northeast Asian cold chain hub handling high-value goods such as medical and food products. Tax reductions were also confirmed for Mitsui Soko Korea’s additional investment of 48.2 billion won. The Authority supported corporate investment through customized regulatory innovation, easing building height restrictions from 40 meters to 60 meters.

The Authority is also accelerating the enhancement of industrial and residential functions. In June, it held a public offering for project operators to normalize the development of the long-stalled 660,000-square-meter Ungcheon and Namsan Districts. With the expansion of Jinhae New Port and its hinterland expected to increase demand for foreign residential facilities, the goal is to create a high-quality, international residential complex.

Officials are breaking ground at the Busan-Jinhae Free Economic Zone, where a global eco-friendly logistics center will be established.

In September, the development plan for the 800,000-square-meter Bobaebokhap District was approved for revision. Reflecting the increasing logistics demand driven by the activation of Busan New Port, logistics businesses will be added to industrial land, and the nation’s largest underground cold chain facility will be installed. This marks a shift from a manufacturing-centered to an integrated logistics-centered structure. Many logistics companies have already expressed their intention to move in.

In September, the Authority also launched the ‘BJFEZ Global Logistics Innovation Task Force’. Major logistics companies such as LX Pantos, Hyundai Glovis, and Dongwon Global Terminal Busan, along with research institutes and local universities, are participating to operate the task force not just as an advisory body but as a policy implementation platform. The goals are to maximize the effects of the Ministry of Oceans and Fisheries’ relocation to Busan, establish a tri-port-based integrated logistics system, and create tangible results in building an eco-friendly and smart logistics ecosystem.

The Authority’s investment achievements have been driven by field-oriented administration. Since Commissioner Park Seongho took office, unnecessary procedures have been reduced, and a support system has been established across all stages, including approval for tax reductions, expedited permits, and site consulting. Regulatory improvements and infrastructure expansion are also being pursued in parallel to support the growth of foreign-invested companies such as Mitsui Soko Japan and Naigai Trans Line.

Commissioner Park stated, "Jinhae is being reborn as a global logistics city where investment and innovation coexist, going beyond a simple port hinterland," adding, "By linking Jinhae New Port and the new Gadeokdo Airport, we plan to attract companies and improve the residential environment, aiming to make it a fully developed global city by 2040."

At the investment agreement ceremony for three new growth engine companies of Gyeongnam Province held last April at the Gyeongnam Provincial Government Office, Governor Park Wansu of Gyeongnam Province (third from the left in the back row), Commissioner Park Seongho (first from the left in the back row), and Lee Hyunho, CEO of Allcargo UL Terminal Co., Ltd. (first from the left in the front row), are posing for a commemorative photo.

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