Commissioner Jin Yang-hyun of the Busan Jinhae Free Economic Zone (BJFEZ) Authority. 

The Busan Jinhae Free Economic Zone (BJFEZ) has made strides for the past 12 years by building industrial clusters connected with regional mainstay industries with a focus on Busan New Port.

The BJFEZ Authority has attracted an aggregate $1.9 billion (approximately 2 trillion won) from 123 foreign-invested companies in advanced industries and port/logistics sectors. “We attracted $170.4 million in FDI from advanced industries and port/logistics companies during the last year, registering a 136 percent jump over the target,” said Commissioner Jin Yang-hyun of the BJFEZ Authority. The following are excerpts from a written interview between NewsWorld and Commissioner Jin in which he spoke of strategies to attract FDI and other policies. 

Question: Will you tell our readers about your plans and ambitions?

Answer: I feel heavy responsibility for my job at a hard time of external and internal economic conditions. I extend whole-hearted thanks for being given an opportunity to work for the development of the BJFEZ Authority.

The BJFEZ Authority is a public entity established with the goal of making the BJFEZ the global hub for  international business and logistics. Our goal is to build a world-class logistics center with a focus on the Busan New Port, a gateway to the economic belt for the Southeast Coast, and evolving the BJFEZ into a global business center by attracting foreign direct investments. 

We at the BJFEZ Authority plan to devote ourselves to establishing the BZFEZ as a world-class FEZ with a vision and passion.

I have a 30-year career as a government post holder being with the Ministry of Strategy and Finance (MOSF) for 29 years and a one-year stint at the Ministry of National Defense. While serving at the MOSF, I was given an opportunity to work at the International Monetary Fund (IMF) in Washington D.C. and the World Customs Organization for about six years. I’d like to make the most of experiences and networking I have accumulated while working at the central government and the international organizations for the purpose of the development of the BJFEZ Authority and the local economy.

Q: Will you introduce major tasks for 2016?

A: We celebrate the 12th anniversary of the opening of the BJFEZ Authority this year. The BJFEZ, now all grown up, has made great progress in district development and attracting of businesses in Korea and abroad. I will reflect on major tasks this year and the future, such as insufficient things found while evaluating the achievements and outcomes. 

We’re seeking to explore specifics to realize the so-called “3+1 core values” — the BJFEZ Authority’s combining of the advanced industry and the three conventional values an international logistics center, creation of an international business-friendly environment, and building of a tourism-leisure complex.

First, the BJFEZ will play a role as an international logistics center. Our authority has built port, airport and railway infrastructure with a focus on the Busan New Port area to make the BJFEZ both a gateway to the Pacific and the starting point of the railway network reaching to Eurasia. Busan New Port has already handled two-thirds of the freight volumes Busan Port covers. As the transfer is picking up speed, Busan New Port is more likely to highlight its role as a gateway to the Southeast Coast Economic Belt. Of late, the development of the Busan North Port will likely highlight the role of Busan New Port Station, with the Songjeong Container Yard emerging as a cargo transportation center. 

Second, the Myeongji International City will play a pivotal role with the creation of a foreign business-friendly environment. The new city, twice the size of Haeundae New City, will be a key district of the BJFEZ, catering to education, medical service and international business.

Third, we strive to make our utmost to build a tourism-leisure complex. The BJFEZ Authority plans to develop the Ungdong District into a multi-purpose recreational/resort complex with golf courses and hotels in consultation with the Geyongsangnam-do provincial government. The district will evolve into a key tourism-leisure area within the Southeast Economic Sphere as it will be connected with such attractions as Haeundae and Geojae Haegeumgang Island. 

Lastly, in order to create additional core values, we strive to upgrade such high-tech companies as shipbuilding equipment makers and automotive parts firms in existing industrial complexes such as Shinho Regional Industrial Complex, Jisa Science & Industrial Complex and Namyang District into ones creating highly added values through convergence with IoT and ICT. 

Q: Will you elaborate on the achievements the BJFEZ Authority has so far made after the designation of the BJFEZ?

A: The BJFEZ has made strides for the past 12 years by building industrial clusters connected with regional mainstay industries within the heart of Busan New Port. I will weigh in three categories attracting of FDI; development projects; and infrastructure projects.

First, the BJFEZ Authority has attracted an aggregate $1.9 billion (some 2 trillion won) from 123 foreign-invested companies in advanced industries and port/logistics sectors. In particular, we attracted $170.4 million in FDI from advanced industries and port/logistics companies during the last year, registering a 136 percent jump over the target.

Second, out of 19 zones in five districts, nine zones, including New Port hinterland zone, have been developed, and 10 others, including the Myeongji District, are under development. In particular, a project to integrate and develop Myeongji District, a key project, has completed 85 percent with multi-unit dwellings whose moving has begun. By the end of this year, 7,000 out of a total of 20,000 households are to move into the housing area. 

In 2017, the Busan West District court and prosecutor’s branch office are to be opened. If a global campus town, a medical center, an R&D center, and hotels are built, the Myeongji District will be transformed into an international city twice the size of Haeundae New City. 

The BJFEZ Authority has become the first project executor among the eight FEZ authorities to develop the Dudong District. The BJFEZ Authority has launched a compensation and land exchange process. The project to develop the district into a new city with a population of 25,000 people will have economic spill-over effects worth 3.5 trillion won.

The Ulsuk Island Grand Bridge was dedicated in 2009 as part of efforts to build road infrastructure. Out of 17 planned roads, 10 roads, including an entrance road to the Mieum District, has been opened to traffic, and remainders will get under way as planned. The Jangnak Grand Bridge, an entrance bridge north of the BJFEZ, will be pushed as a state-invested one.

Despite several changes, the BJFEZ Authority has developed neighborhood industrial complexes, including the Noksan National Industrial Complex, into a shipbuilding equipment, advanced industry and port/logistics center. They now accommodate some 2,800 tenant companies with an aggregate 72,000 employees. 

Q: Will you specify strategies to attract foreign direct investment (FDI)?

A: It is not easy to attract FDI due to the sagging global economy and cut-throat competition of attracting FDI among countries.

Given investors’ positions, suggesting profitable models and obtaining investors’ confidence should lie at the heart of attracting FDI. On top of tax incentives, foreigner-friendly living conditions, including education and medical services, need to be improved. 

We’ll strive to ensure investors’ confidence over the successful investments by suggesting the strengths of the BJFEZ, the geo-economic location of the FEZ as a gateway to the Southeast Coast Economic Belt, as well as such tourism resources and national environment as the Busan International Film Festival, Haeundae, Geojae Haegeumang, and other Hallyosudo areas.

Word of mouth is significant in attracting investors, as is the case with food. We frequently have opportunities to lend an year to complaints from foreigner-invested companies and diverse events to promote smooth communications with them to promote the hype of the BJFEZ as a business-friendly area. 

I’ll devote myself to exploring foreign investors by spearheading the hosting of overseas IR sessions slated for this year. We plan to conduct aggressive overseas activities to attract FDI by expanding the conventional FDI target countries, including China and Japan, to others, including India. 

Q: Will you introduce geo-economic advantages and foreign investor-friendly environment the BJFEZ Authority offers?

A: The BJFEZ has a prominent geo-economic advantage with the big backyard market of Northeast Asia as a gateway to the Pacific and a linkage to the Eurasian Continent. The area also boasts a natural environment rich in cultural and tourism resources such as Ulsuk Island, a migratory bird habitat, the Jinhae Navy Port Festival, Geojae Haegeumgan, Haeundae and the Busan International Film Festival. 

The FEZ is clustered with a port, airport and railway with a focus on Busan New Port, which already handles two-thirds of Busan Port’s aggregate cargo volume. Momentum has been picking up the speed. The BJFEZ will likely play a bigger role as a gateway to the Southeast Coast Economic Belt. 

It has emerged as an area with great potential value to invest in, given the acceleration of the development of western Busan and the building of Busan New City, Myeongji International City and Dudong District as an advanced multpurpose logistics city.

The Busan Jinhae Free Economic Zone aims at being a global top logistics and business center. (Photos:BJFEZ)