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Gearing up to become the world's best center of industry and logistics

Zone(hereinafter ¡°GFEZ¡±) was designated as an FEZ on October 2003, the second of its kind in the nation, following IFEZ, with the aim to build the world¡¯s best hub of logistics and advanced industry.

Completing its first phase of major development projects and investment attractions, GFEZ has celebrated its eighth anniversary on March 24, this year.

On this occasion, Lee Hee-bong, the commissioner of the GFEZ, said ¡°The GFEZ has grown into one of major growth engines driving the nation¡¯s economy. With a more or less 10 percent share of the nation¡¯s entire the stature of our FEZs in South Korea is clearly evident.¡±

When he asked about what kinds of relative advantages the GFEZ has over other FEZs in the nation, he explained, ¡°The GFEZ has relatively excellent advantages in industry infrastructure over other FEZs in the areas of steel and petrochemicals. Related industries are also well developed. The GFEZ boasts the lowest level land value among six FEZs in the nation - three time cheaper than BJFEZ, four time cheaper than IFEZ -- which is a strong component attracting relatively larger numbers of companies into the FEZ than some other FEZs.¡± ¡°Most of the Korean FEZs have in common geographical advantages over FEZs in China and Japan in the regional market. Among Korean FEZs, the GFEZ has an overwhelming geographical advantage as the GFEZ is located on the primary route connecting Northeast Asia and the Pacific. This means the customers companies using the GFEZ are required to pay the lowest level logistics cost among the FEZs in the nation.

Being located at the southern tip of the Korean Peninsula, the GFEZ is surrounded by beautiful nature and many history cultural assets. All these constitute a favorable environment to do business and live in.¡±

The GFEZ¡¯s industrial complex comprised of five business districts covering 85.28km2 is being smoothly developed and is aiming to be completely built by 2020. The massive expansion in SOC(Social Overhead Capital) is most conspicuous among its many advancements so that the GFEZ¡¯s competitiveness in industrial facilities and logistics is greatly enhanced to the nation¡¯s top-level, from the poorest level in its initial development phase compared with other FEZs in South Korea. Various types of SOC expansions include construction of Yi Sun-sin Bridge, and the construction of a highway connecting the three cities of Gwangyang, Jeonju and Mokpo.

Ever since its designation in 2003, the GFEZ has posted substantial achievements in attracting a total of 129 companies worth $10.9 billion in investment and thus creating more than 300,000 jobs. The GFEZ Authority is mobilizing all competencies in order for it to effectively attain the goals by 2020 of attracting domestic and foreign capital of $25billion, a settled population of 120,000, and employment creation for 240,000 people through attracting domestic and foreign enterprises.

Despite the difficult economic conditions at home and abroad caused by the European financial crisis and other factors, the GFEZ Authority has attracted US$800 million in investment from 14 companies this year, adding vitality to the local economy.

With the goal of attracting $2billion this year alone, the GFEZ Authority has made all-out efforts and has attracted investment from companies such as MPC Yulchon Power and POSCO Magnesium. It is currently in talks with 16 companies at home and abroad for more investment, and results are expected before the year ends. Some 40 companies have been newly identified as prospective investors, and they are being heavily courted. Development of the still insufficient industrial complexes will be further accelerated to make investment even much more attractive.

In spite of its comparative lack of SOC facilities and lower local government finances compared to other zones, the GFEZ recently ranked second for a third consecutive year since 2010 in the government's evaluation of the free economic zones securing an incentive of approximately 1.5billion won from the Ministry of Knowledge Economy.

Commissioner Lee attributed the remarkable evaluation to its internal capabilities and development potential steadily accumulated so far. Asked about what the GFEZ 2020 New Vision is and what types of specific promotion strategies are currently being implemented to realize this vision, the commissioner confidently explained, ¡°We have set our ultimate goal of building the global top-level industry and logistics city. For the vision, the GFEZ Authority has devised five promotion strategies - becoming the nation¡¯s largest manufacturing base, training&medical hub, leisure&tourism hub, a Northeast Asia logistics base, and an international business city -- and is now consolidating the base of such specific areas of promotion strategies. We are now convinced that the vision will be certainly achieved if the satisfactory level of company attraction and backing city formation is made, as scheduled,¡± adding that we will continue to monitor and analyze the trend and situation with more strategic thinking and approach, rather than the administrative approach that prevailed during the rapid development era.

The commissioner lastly noted that for effective investment attraction, the GFEZ Authority has made its decision to change the way of attracting investment from a separate approach to teamcentered one. We will ceaselessly serve our customers companies with servant leadership, more positive, proactive, and customer-oriented mindset. The GFEZ will further intensify the cooperation with other domestic FEZs, not costing valuable time in an exhausting competition with them while also seeking the effective way of jointly attracting investment through sharing effective information on specific industry realms such as tourism, real estate, etc.

Other Articles

Special Economic Zone for Knowledge Creation  [Issue No. 462]

The Global Hub for International Business and Logistics  [Issue No. 462]

Global Business Utopia Incheon Free Economic Zone: Seeking various creative ways to become the world¡¯s third biggest FEZ in 2020  [Issue No. 462]

Korean FEZs Accelerating Their Steps toward Becoming the Hub of Northeast Asia  [Issue No. 462]

 
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