Gwangyang FEZ attracting petrochemical firms

South Jeolla Province Governor Lee Nak-yon, fourth from left, and Gwangyang Bay Area Free Economic Zone Authority Commissioner Kwon Oh-bong, seventh from left, stand with representatives from businesses that have signed on to invest in Sepoong General Industrial Complex at an investor relations session in Yeosu, South Jeolla Province, Tuesday. / Courtesy of Gwangyang Bay Area Free Economic Zone Authority

By Yoon Ja-young

Gwangyang Bay Area Free Economic Zone (GFEZ) Authority held a meeting with investors for its Sepoong General Industrial Complex, Tuesday. It also signed memoranda of understanding (MOU) with two foreign businesses which will be investing 50 billion won, and memoranda of agreement (MOA) with four local companies for a 133.5 billion won investment.

The complex is expected to be an attractive option for petrochemical firms, with the government planning to invest 521.9 billion won in constructing a three-square-kilometer complex to be completed by 2020. The first stage of construction began in October.

The government allocated 60.2 billion won in July to develop a functional chemical materials cluster within the Sepoong complex. The chemical materials, required for the production of electric and electronic goods, automobiles, secondary batteries and drugs, have been getting the spotlight as the next growth engine for the country’s petrochemical industry, which is among the top global five but closely followed by emerging competitors from China and the Middle East.

The country is thus seeking to make a shift from basic petrochemicals to high value-added chemical materials, and it expects Sepoong to lead the change. The development plan was also included in President Park Geun-hye’s presidential campaign pledges.

“We are setting up R&D infrastructure first to build the cluster in Sepoong, attracting both domestic and overseas businesses,” said GFEZ Commissioner Kwon Oh-bong. ”The meeting with investors is our first step for this.”

On top of the material cluster, Sepoong will harbor bio packaging material businesses.

It is one of the most spotlighted industrial complexes of GFEZ, which is being developed as a dynamic international trade city combining new industries, logistics and tourism.

The area around Gwangyang, located in South Jeolla Province, is known for its splendid natural scenery, harboring diverse natural assets such as Suncheon Bay Ecological Park, Baegunsan Mountain and Hallyeohaesang National Park.

For investors, the biggest attraction of the Gwangyang Bay Area is Gwangyang Port, which is the country’s second-largest. It is connected by other means of transportation, such as the nearby KTX Suncheon Station and Yeosu Airport.

The presence of POSCO Gwangyang Steelworks and industrial complexes in Yeosu also provide an agglomeration effect for businesses.

GFEZ boasts high-quality housing for investors while the residential costs are still inexpensive compared with other parts of the country. On top of the infrastructure of Suncheon and Yeosu, a new city is being built with a residential area, hospitals and an international school, located 10 kilometers from the complex.

Investors are eligible for diverse tax exemptions such as tariffs, corporate tax and property tax, if they meet certain conditions.