Promoting of the Special Economic Zone in Busan-Jinhae, Gwangyang

Until the year 2020, the Free Economic Zone furnished with harbor logistics districts and high technology industrial districts will be developed in 31,540,000 pyong in Gangseo-gu, Busan and Jinhae-shi region, South Gyeongnam Province and in 26,910,000 pyong in Gwangyang Bay Area.

The government opened the Free Economic Zone Council under the lead of Kim Jin-pyo, Deputy Prime Minster and Minister of Finance and Economy, and confirmed the “‘Busan, Jinhae- Gwangyang Bay Area Free Economic Zone Promotion Policy.” Following this is the increase of the Free Economic Zone in Korea, numbering three including the Incheon area that has been under development already.

Busan-Jinhae Free Economic Zone (accommodating 235,000 people) will be developed into a harbor-rear logistics district high technology industrial district which develops precision machineries and automobile parts separated into five areas of Busan New Harbor, Jisa, Myeongji, Woong-dong, and Doo-dong. In addition, campuses of well-known foreign universities will be attracted and 5 percent of the total housing construction of 84,000 housings will be exclusive separate housings and apartment housing-business complex for foreigners in order to stimulate foreign capital investment.

The government will invest 7,690.2 billion won (national fund of 2,132.2 billion won, local government funds 3,077.3 billion won, and national and international private funds 2,480.7 billion won) for the purpose of building the site and infrastructure of roads, and water and sewer system.

Gwangyang Bay Area (Gwangyang-shi, Yeosu, Suncheon, South Cholla Province and Hadong-gun region, South Gyeonsang Province) Free Economic Zone will revive into a logistics center utilizing the Gwangyang Harbor and specialized industrial districts combined with existing industrial facilities such as Yeosu Petrochemical District and others.

The government will invest 13,747.4 billion won (national fund of 3,529 billion won, local government funds 2,259.3 billion won, national and international private funds 2,313 billion won, and independent raising of selling the national and public property of 5,646.1 billion won) for the purpose of building various facilities of infrastructure.

The Ministry of Finance and Economy is expecting enormous economic consequences of production inducement of 2,000 billion won (Busan-Jinhae of 9.5 billion won and Gwangyang Bay Area of 1,600 thousand won) and employment inducement of 3.12 million people (Busan-Jinhae of 1.52 million people and Gwangyang Bay Area of 1.6 million people), and foreign investment of $27.5 billion (Busan-Jihae of 15.5 billion dollars and Gwangyang Bay Area of $12 billion).

Jin-Hup Song jinhup@donga.com