Development of 63.36 Million Pyong Free Economic Zone in Incheon

Yeongjong Island, encompassing the Incheon International Airport and the surrounding regions, Songdo Island and Chongna areas of Incheon, will be developed into free economic zones by 2020. The government unveiled its plan to invest 202 trillion won in a 63.36 million pyong area to foster three free economic zones consisting of international business centers and comprehensive logistics complexes. One pyong equals 3.3 square meters.

On October 15, the Commission for Northeast Asia Economic Hub (Commissioner Bae, Soon-hoon), the Ministry of Finance and Economy, and Incheon city government briefed President Roh about the “Incheon Free Economic Zone Development Plan” at the opening ceremony of Incheon free economic zone office held at the Incheon International Airport.

According to this scheme, POSCO and the U.S. Company Gale Group Inc. will invest $12.7 billion in Songdo Island to build a 1.67 million pyong international business center. Within the center, 61 buildings will be constructed including a 60-story convention center, hotels, and office buildings.

At the heart of the Chongna area, international business and a financial complex will be set up with a golf course, theme park, and leisure facilities around the residential area.

The Incheon International Airport, located on Yeongjong Island, will be opened around the clock starting from July 2004 and will abolish departure/arrival procedures for Korean citizens.

To stimulate foreign investment in free economic zones, the government will increase the number of apartments for foreigners, allow construction of houses near golf courses and natural areas to foreign investors, and approve of construction of elementary, middle and high schools as well as universities by the foreigners and permit them to admit students as they wish.

In addition, the government will revise its law relating free economic zones to attract renowned hospitals such as Johns Hopkins Hospital, Mayo Clinic, and Boston General Hospital of the U.S. where not only foreigners but also Korean citizens would be able to receive treatment.

The size of the Incheon free economic zones is about 70 times the size of Yeoido in Seoul.

The commission said that a successful development of free economic zones can bring a 312 trillion won increase in production, 128 trillion Won in added value, and create 4.84 million jobs.

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