The Busan-Jinhae Free Economic Zone (BJFEZ) ranked 1st overall in the 2016 performance evaluation of seven free economic zones across the nation for the second straight year.
The Economic Free Zone Commission held its 91st session on May 19 and announced the results of the 2015 performance evaluation of seven FEZs across the nation, said the Planning Office of the Free Economic Zones under the umbrella of the Ministry of Trade, Industry and Energy (MOTIE) said Director General Her Nam-yong of the Free Economic Zone Planning Office. Every year, the FEZ performance evaluation system, which debuted in 2010, evaluates the previous year’s business performances. The evaluation was conducted by a committee consisting of 14 members based on overall evaluations, including paper and on-site observation evaluations. Seven FEZs are evaluated in each of five areas organizational operation, implementation of development projects, attraction of investments, corporate support, and settlement environment.
The BJFEZ placed first overall in the 2016 business performance evaluation by gaining the highest points in the categories of implementation of development projects and attraction of investments. The BJFEZ was evaluated to be excellent in efforts to invigorate development as well as the establishment and implementation of execution schemes, ranking 1st with a regular zone implementation rate of 94.1 percent.
The BJFEZ got the highest score in attracting investments, as the FEZ employed differentiation investment attraction strategies with a focus on such sectors as global logistics companies, anchor companies in each district and prominent research institutes. The BJFEZ attracted $458 million in FDI , representing about 3.5-fold jump over the target of $130 million.
In the category of settlement environment, the BJFEZ obtained a higher score by helping a team to visit tenant companies to solve grievances and complaints they experience and endeavoring to create a settlement and living environment for foreigners with a focus on the Myeonji District.
According to the outcomes of the latest performance evaluation, the BJFEZ received a combined 658 million won in operation costs in the form of a subsidy from national coffers, plus awards and cash rewards presented to prominent BJFEZ officials as incentives.
Commissioner Jin Yang-hyun of the BJFEZ Authority said, “(We) will devote ourselves to developing the BJFEZ area into a global integrated logistics hub by accelerating development and investment attraction based on the outcomes of the performance evaluation.” He extended thanks to his staff for their dedicated efforts to help the BJFEZ rank 1st for the second straight year despite difficult conditions.
What is the Free Economic Zone (FEZ)?
A Free Economic Zone is a specific area dedicated to providing the best environment for business and living to attract leading multinational companies and business to make Korea a business hub in Northeast Asia.
Background
Korea’s economy suffered difficulties with the bitter aftermath of the 1997-1998 financial crisis. The country is located between China and Japan, the world’s largest single market and the world’s second largest economy, respectively. Korea needed a catalyst to return to economic growth and stability. Against this backdrop, the Korean government began the FEZ initiative.
The Korean government designed six areas across the country as the Free Economic Zones to transform the nation into the financial and logistics hub of Northeast Asia, taking full advantages of world-class airports and ports, geographical location, as well as IT infrastructure to provide foreign investors and their families with an optimal business and living environment.
About the BJFEZ
The BJFEZ covers 51.2sq. km with a population of 243,000 by 2020. This zone is divided into five areas and 19 districts - New Port, International Business Town (Myeongji), High-tech & Manufacturing Area(Jisa), Mechatronics, Education & Research Area (Dudong) and Tourism & Leisure Area (Ungdong) which will be developed in three stages by the year 2020.
Vision
* To provide an optimal environment where people, capital and technologies are able to come together to create synergy effects in Northeast Asia
* To become a premier logistics hub
* To develop the optimal logistics base bringing together ports, airport, railways, and roads
* To facilitate easier interaction of the New Port and the neighboring industries: aviation, automobile, machinery equipment, shipbuilding
* To foster an efficient business environment by providing a one-stop administrative service with attractive incentives
* To spearhead eco-friendly development for minimizing the impact of environmental pollution
Mission
Providing an optimal business environment with ideal living conditions to meet global standards for foreign investors
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