By Yoon Sung-won
The Incheon Free Economic Zone (IFEZ) has been struggling to attract foreign investment this year, because of a slowdown in China and the absence of its administrative chief.
According to the IFEZ Authority, Sunday, foreign director investment registered for Songdo, Yongjong and Chongna districts between January and November stood at $652 million, 43 percent of the $1.53 billion goal for this year.
This is the lowest figure since 2011 when foreign investment in the three districts was estimated at $553 million.
Considering that the government’s drive to develop a resort complex has drawn about $600 million worth foreign investment in the Yongjong district, the IFEZ has barely avoided the lowest investment in its history.
The government designated the IFEZ as the nation’s first free economic zone in 2003. Based on brisk development in the Songdo International Business District, it attracted foreign direct investments worth $2.11 billion in 2012, $943 million in 2012 and $1.71 billion last year.
The IFEZ Authority said a bribery scandal involving IFEZ Commissioner Lee Jong-cheol, which left the chief position vacant for 10 months, has undermined its business, negatively affecting foreign investment.
The IFEZ deputy commissioner Cho Dong-am has been standing in as acting chief.
At the end of last year, Incheon City separately held an extensive audit of the IFEZ Authority and uncovered 14 illegalities. The authority said this had demoralized its employees.
China’s economic slowdown also had a negative influence because its international investment companies stopped investing in large overseas development projects such as the IFEZ.
The IFEZ Authority said it would make all efforts to carry out the government’s resort complex development project scheduled to be outlined in the first half of next year.
“We pledge to boost our administrative capabilities to recover from this year’s poor foreign direct investment attraction by inviting high-tech industries and a resort complex project here,” said an IFEZ Authority official.