By Do Je-hae
Staff Reporter
The southeastern city of Daegu and adjacent areas in North Gyeongsang Province, or Gyeongbuk, are rushing to re-invent themselves through the establishment of a comprehensive cluster of knowledge-based industries and research centers.
Momentum for the project has been gaining pace, particularly in the last few months, with the March 13 launch of the construction of the Daegu Technopolis, the centerpiece of the Daegu Gyeongbuk Free Economic Zone (DGFEZ) and Korea's future answer to the Silicon Valley in the United States.
The DGFEZ is in development in 11 districts in Daegu, Gyeongsan, Yeongcheon, Gumi and Pohang, aiming to attract medical, educational and cultural service providers as well as high-tech manufacturers and researchers in and outside Korea. The monumental 4,607.8 billion-won projects started last year for completion in 2020.
Most of the 11 districts have started initial construction procedures, while the authorities will start talking with possible domestic and overseas investors during the latter half of the year.
Ahead of an international forum slated for June 17 in Seoul to increase the profile of the DGFEZ here and abroad, Commissioner Park In-chul of the DGFEZ Authority elaborated on the outline and visions of the landmark enterprise in a recent interview with The Korea Times.
Inland-Type FEZ Model
One of the latest to join a series of FEZ initiatives underway in the country since 2003, the DGFEZ sets itself apart from other similar domestic and overseas ventures for a number of reasons, Park explained.
Special designation of areas in the form of a free economic zone for encouraging development with tax benefits and various incentives have traditionally centered around cities with proximity to the ocean, as in the case of Busan, Incheon, or Samanguem in South Jeolla Province.
``What we are basically aiming to build is a knowledge-intensive industrial hub of Northeast Asia with a distinct inland-type FEZ model,'' Park told The Korea Times. ``Unlike existing free economic zones in other parts of the country, we will focus on nurturing R&D, science and high-tech manufacturing.''
Commissioner Park has consistently countered criticism from some experts with regard to the efficiency of cargo and human transportation because of the interior position of the DGFEZ in the southern part of the Korean Peninsula.
``A new international airport to be built in the Gyeongsang region will connect the DGFEZ to the world,'' Park added.
``In order to host large-scale high-tech foreign firms and R&D centers, hospitals and universities, the DGFEZ provides sites free of charge for 50-100 years,'' Park said, stressing the incentives to be extended by the DGFEZ to minimize the cost of doing business in the region.

Major Features
The DGFEZ comprises several major complexes including the Seongseo fifth High-Tech Industrial Complex (Secheon District) in Daegu, focusing on automotive, electronics and information-communication fields. The International Fashion & Design District will house global design research centers and textile businesses. The Yeongcheon High-Tech Parts and Materials Industry District will be devoted to developing hybrid machinery.
Other major constituents of the DGFEZ are the Suseong Medical District, Gumi Digital Industry, Gyeongsan Education & Research and the Pohang Tech Industry districts.
In addition, the DGFEZ plans to create an academic cluster through hosting branch schools of institutions of international recognition.
Park maintained that Daegu is ideally positioned to house the above functions, particularly because of an outstanding pool of its existing human resources. He highlighted Daegu's long history of science and technology education.
``One needs to consider that the Daegu-North Gyeongsang area is home to 51 universities, making up 14 percent of the total number of universities in the country. Annually, they produce a potential workforce of 70,000 students with quality education,'' said Park. ``About 1,700 of them are science majors with expertise in information technology, biotechnology and nanotechnology.''
Park also mentioned that many Korean firms of international reputation such as Samsung Electronics, Hyundai Motor and POSCO, among others, run operations in the region.
New Technology Hub
The Dalseong Technopolis District in Daegu, Korea's fourth largest city after Seoul, Busan and Incheon, is one of the most ambitious features of the DGFEZ. To be completed by 2012, it will be constructed in a way that will distinguish itself from the Korea's main R&D hub - Daedeok Science Town in Daejeon - Park said.
``Research facilities in Daejeon, mostly state-funded, have focused on basic science studies. However, our research centers will have more industrial connections because they will be devoted to creating hybrid automotive parts, robots, new & renewable energies, and mobile communication."
The technopolis was launched in March with an inauguration ceremony, where many dignitaries including Rep. Park Geun-hye, representing the Dalseong district, professed the long-time wish for the Daegu citizens in seeing such a project realized.
Construction for the Electronics and Telecommunications Research Institute, the Korea Institute of Industrial Technology and National Daegu Center of Science, among others, will begin this year.
Educating Global Citizens
A key emphasis of the DGFEZ is building a center of education of global standards. The DGFEZ became first of its kind in Korea to initiate the construction of an international school on May 19.
``In order for FEZs to succeed, we need human resources equipped with professional skills and global perspectives, not just in business but in all areas,'' Commissioner Park said, in introducing the background of the foundation of the Daegu International School. ``It will also provide good educational opportunities for foreign nationals in the area.''
To be established in the International Fashion & Design District, the school will run primary, middle and high school curriculums managed by the Lee Academy, based in Maine, U.S, since 1845.
``The school's legal foundation is based on the FEZ Special Act. Therefore, it is different from other international schools in Korea. For example, Korean nationals will make up 30 percent of the whole student body of 400,'' Park said.
Benchmarking Overseas Examples
Earlier this month, the government announced a master plan to boost the services sector, which the FEZ authorities have welcomed as measures to aide their future activities in securing investors at home and abroad.
The DGFEZ Authority has signed a memorandum of understanding with similar ventures in France and Germany to start discussions on running joint research and facilities. Also it has recently agreed to work with the Korea Foreign Company Association and the European Union Chamber of Commerce in Korea and various international consulting firms as part of efforts to publicize itself to the global business community.
It is also in this context that the DGFEZ Authority will hold an international forum with partners and experts to raise the profile of the DGFEZ and discuss ways for further cooperation.
Of particular note, representatives of the Sophia Antipolis in France and Technologie Park Heidelberg in Germany will attend the conference to transmit their expertise in establishing a global hub of science, technology and business.
A graduate of Seoul National University, the 59-year-old began his bureaucratic career in 1974 after passing the state exam for higher civil service. After more than 20 years with the finance ministry and offices of the President and the prime minister, he led a special task force for supporting Daejeon's Daedeok Science Town before taking up his current post last year.
jhdo@koreatimes.co.kr
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