Incheon FEZ Magnet for Foreign Investment
By Lee Hyo-sik
Staff Reporter
The Incheon Free Economic Zone (IFEZ), the first of its kind in South Korea, has attracted a great deal of investment from foreign investors and companies over the years, emerging as a leading business, financial and logistics center for Northeast Asia.
Also, since its establishment in August 2003, IFEZ has revitalized economic activity not only in the respective administrative districts, but also all over the country, acting as the world's 13th largest economy's new growth engine.
Over the past five years, IFEZ has attracted more than $9 billion in foreign investment, the largest amount among the country's three free economic zones, that include Busan-Jinhae and Gwangyang. If a number of signed memorandums of understanding (MOUs) between the IFEZ Authority and multinational investors and businesses are included, the figure swells to $42 billion.
The zone has also attracted investment worth $688 million from domestic investors and companies over the same period.
One of the reasons why IFEZ is attractive to international investors and firms is Korea's optimal geographical location, with easy access to mainland China and other major Asian markets. The country also boasts of advanced information technology (IT) and manufacturing facilities, as well as talented human resources.
IFEZ has been making an all-out effort to create a state-of-the art business and residential environment for international investors and companies, with key roads, bridges and other necessary urban infrastructure under construction.
IFEZ comprises three designated areas ― Songdo, Yeongjong and Cheongna ― on a total area of 51,756 acres.
New Songdo City, the world's largest privately-run development project, will be home to international businesses and knowledge-based information technology industrial complexes. The U.S.-based company Gale, a developer and marketing agent, is in a real estate joint venture with POSCO Engineering & Construction to develop Songdo City by 2020. The city is being built based on the innovative concept of a ``ubiquitous city.''
Also, both foreign and Korean students will start attending classes in English at the New Songdo City International School, which will open its doors in April. The New York-Presbyterian Hospital, the first foreign-based hospital in Korea, will open this year to better provide medical services to expatriates as well as locals residing in the zone.
By 2009, an $11 billion twin-towered 151-story skyscraper, the tallest in Northeast Asia, as well as the Incheon Bridge, which connects Incheon International Airport and Songdo, will be completed, making New Songdo City one of Asia's new business centers.
As a result of improving residential and business facilities, a number of the world's top-notch universities, including the North Carolina State University, have signed MOUs to set up branch schools and research centers inside IFEZ.
Also, IFEZ has signed a $2 billion MOU with AMEC, a U.K.-based civil engineering company, to build an international business zone near Incheon International Airport on Yeongjong island. It will also develop a world-class leisure and recreational tourist complex there.
The Cheongna Area will have international sports and leisure complex and floral complexes on 4,420 acres. Construction began in the second half of 2005, with completion targeted for 2008.