Pusan-Kwangyang Are Likely to Become Special Economic Zone

Pusan and Kwangyang are likely to be designated as Special Economic Zone in early next year. According to the Ministry of Finance and Economy (MOFE) and the Ministry of Construction and Transportation (MOCT), the government is devising a plan to designate some areas of Pusan and Kwangyang as Special Economic Zone simultaneously when it designates an area combining Songdo New City, Kimpo landfills, and Yongjong-Do in Seoul metropolitan region.

A related person of MOFE said, "We will designate an area near Seoul as Special Economic Zone early next year when the regular session of this year`s National Assembly passes the Act on designation of Special Economic Zone," and added, "Since one more year is left to implement the plan, we have just started to work on a task of designating areas near Pusan and Kwangyang simultaneously, which are in need of additional designation."

The government is going to dispatch an on-site survey team to Pusan and Kwangyang on next week, search suitable areas for possible Special Economic Zone, and review the feasibility.

As for Special Economic Zone of Pusan, Kangseo-Gu, which is located between Naktong River and Jinhae, is emerging as the most probable candidate. The related person of MOFE said, "At least five million Pyoung is needed to be designated as Special Economic Zone, " and added, " Kangseo-Gu will realize most of the benefit of Special Economic Zone designation since the area has a lot of developable land due to the Greenbelt that takes 95 percent of the area, and Kimhae Airport is located within, and Pusan New Port at Gadeok-Do is being constructed in the South."

Foreign companies settling in Special Economic Zone will receive various governmental supports, and foreigners-only residents, hospitals, and pharmacies will be established. Furthermore, the entire public document will be published in English in addition to Korean, and major foreign currencies such as dollars, Euros, and Japanese Yen will be used there.

Joong-Hyun Park sanjuck@donga.com