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By Cathy Rose A. Garcia
Staff reporter
The Busan-Jinhae Free Economic Zone (BJFEZ) is shaping up to become the international business and logistics hub of Northeast Asia and the world.
Established in 2004, the BJFEZ covers 104.8 square kilometers (26,000 acres) located on the southeastern tip of the Korean Peninsula. The area is strategically positioned along the North American and European trunk routes, the starting and ending point of the 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 of northeast Asia, 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, 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, Myeongji international business town, Hwajeon Industrial Complex, 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 (FTZ) 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. By 2015, 76 foreign and domestic companies focusing on logistics and distribution will be housed in the FTZ.
The Jisa area features the Busan Science and Industrial Park, R&D centers, automobile, shipbuilding and aerospace manufacturers and machinery related industries. The Mieum district aims to be a center for the parts and materials industry, while the Songjeong, Myeongdong and Sanggok districts will focus on general business and new green energy industries, as well as residential and support services for participants in the FEZ.
The Myeongji international business district will be operational starting 2013 and will include a financial center, convention center, an international hospital and K-12 school.
The Ungdong area is being developed as the tourism hub with resorts, casinos, hotels and shopping malls.
In total, the BJFEZ offers businesses a logistics powerhouse backed by the area's solid reputation as a world leader in high technology value added industrial manufacturing. Foreign investors and their accompanying families will be quite impressed as it is also being developed as an environmentally-friendly city with a superior standard of living.
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