Gwangyang a Logistics Center
By Lee Hyo-sik
Staff Reporter
The Gwangyang free economic zone (FEZ) is strategically located at the crossroads of Northeast Asia between China and Japan. Situated at the southernmost part of the Korean peninsula spanning 88.98 square kilometers, it has become a multifunctional hub in logistics, value-added manufacturing, international living conditions and tourism in Northeast Asia. Also, once the Gwangyang FEZ is linked with the Trans-Siberian and Chinese railways, the cost savings for companies operating in the area will be enormous.
The zone offers businesses and residents a planned environment consisting of a top-of-the-line container port, high-quality infrastructure, advanced manufacturing sites, logistics areas, and recreational and cultural spots.
Since its establishment in 2003, the Gwangyang FEZ has attracted investment from 24 multinational firms worth $3.2 billion as of October.
The Gwangyang FEZ Authority Commissioner Baek Ok-in said ``as competition increases between Northeast Asia's three largest economies ― Japan, China, and Korea ― and the winner will be determined by the ability to attract fast changing global enterprises to one's shores,'' adding that the free economic zone's strategic plan is to bring more cutting-edge foreign-invested companies to the area.
``With a total population of 1.5 billion, the Northeast Asian market is a treasure ready to yield tremendous benefits to bold companies ready to take the challenge. We will help incoming foreign companies and investors by offering highly skilled workers coupled with unsurpassed infrastructure and major geographical advantages,'' he stressed.
Baek said the one-stop shop services provided to foreign invested firms will continuously attract and support the most prestigious companies from around the world.
Five development zones
The Gwangyang FEZ is comprised of five unique zones ― Gwangyang, Yulchon, Shindok, Hwayang and Hadong. Gwangyang District is at the heart of the zone, not only because of its central geographical location but also because it operates a container port.
It is also home to one of the most powerful transportation companies in the world, Hong Kong-based Hutchison Port Holdings.
Currently, the port has 16 berths that can handle 2.83 million TEUs (twenty-foot equivalent units) per year. When the expansion is completed in 2011, the port will consist of 34 state-of-the-art loading and unloading berths, three of which will be fully automated. The port area will then cover 5.16 square kilometers and the lines of its berthing walls will be 13 kilometers long.
Also, the world's fourth largest steel maker POSCO is running a large steel mill in the area, producing 16.2 million metric tons of hot-rolled steel and other derivative products each year. Yeosu National Industrial Complex is also part of the Gwangyang FEZ, responsible for 56 percent of the nation's annual petrochemical production.
Hwayang District is the focal point for tourism in the region. With its beautiful scenery and pleasant climate, the district is ideal for golf courses, casinos, cottages, horse-riding clubs and sports parks. Furthermore, the Gwangyang FEZ Authority plans to bring an international amusement firm to the area to build an ocean park.
Yulchon District is a stretch of land ideal for world-class manufacturing, petrochemical, and steel-related industries. The area is designed to attract companies that can take advantage of the international airport in Muan.
Shindok District and Hadong District are being transformed into a state-of-the-art residential complex for foreign investors and employees of multinational firms operating in the Gwangyang FEZ. A total land area of 25.49 square kilometers has been set aside to build an elaborate modern suburban district, accommodating more than 7,000 households.
Also, the district will include sport facilities, foreign schools, hospitals and community centers, turning the Gwangyang FEZ into one of the best places to live in Northeast Asia.