BJFEZ set to become Asia’s hub

By Yoon Ja-young

The Busan-Jinhae Free Economic Zone (BJFEZ) is shaping up to become the international business and logistics hub of Northeast Asia. Established in 2004, the BJFEZ covers 83.1 square kilometers (20,000 acres) located on the southeastern tip of the Korean Peninsula. The area is strategically positioned along the North American and European trunk shipping routes, the starting and ending point of the envisioned future Asian intercontinental railroad, and the heart of Korea’s southeastern industrial belt.

To achieve its vision of turning the Busan-Jinhae area into an international business and logistics center, the BJFEZ has a five point strategy to ensure its full development by 2020.

The strategy involves ensuring the best business practices environment; reinforcing the region’s specialization in logistics and distribution; focusing the free economic zone as a center of future technologies stressing innovative R&D; promoting environmentally friendly tourism; and creating an info-based business city offering top notch services to foreign investors and their families.

“Our five point strategy is being achieved by the continued attraction of foreign investment in new logistics capabilities, new technologies by offering competitively priced land, infrastructure and other forms of financial assistance,” the BJFEZ said.

Generous incentives, such as exemptions from national, local and property taxes, and tariffs, are being dangled to attract more investment from abroad.

Investors can find opportunities in port and logistics-related activities, real estate development, tourism and leisure, high-tech manufacturing, research and development centers, and medical and educational facilities.

There are several major projects currently being undertaken by the BJFEZ Authority, including the Busan New Port, high-tech manufacturing and R&D complex in the Jisa area, the Myeongji international business town, the Hwajeon Industrial Complex, the West Busan distribution complex, and tourism and leisure facilities in the Ungdong area.

The Busan New Port, considered the heart of the BJFEZ, will be fully operational with 30 berths by 2015. The competitive Free Trade Zone distribution park covers 60 percent of the port’s hinterland area. Cargo departing and entering the area will get 100 percent exemption from customs duties, while lower rent will be offered to foreign logistics companies.