A view of the IFEZ at night.

Commissioner Lee Won-jae of the Incheon Free Economic Zone Authority. (Photos: IFEZ)

The Incheon Free Economic Zone (IFEZ) has been acclaimed for making something out of nothing, as the IFEZ Authority, which supervises the development of the zone, has transformed what was once just a mudflat into Korea's largest free economic zone.

With Korea in a nutcracker between economic heavyweights China and Japan, the IFEZ was opened in 2003 to strengthen the country's economic competency by transforming three districts of Incheon, west of Seoul - Songdo, Cheongna and Yeongjong - into hubs for logistics, international business, leisure and tourism.

IFEZ was designated as Korea’s first free economic zone on Aug. 11, 2003, and was officially opened on Oct. 15 of the same year.

The Incheon Free Economic Zone authority celebrated its 15th anniversary on Oct. 15, last year. Industry officials said the achievements the IFEZ has made over the past 15 years are unprecedented on the global stage, as the zone has attracted $11.83 billion of foreign direct investment (FDI). The amount accounts 67 percent of the total FDI that the country’s eight other free economic zones have attracted so far.

Over the last 15 years, IFEZ has developed into a high-tech city that is a hub for logistics, trade, business and tourism. It has gained international attention for its reclamation of the Songdo tidal flats and has maintained its position as a truly global luxury city through constant evaluation.

IFEZ’s achievements over the past 15 years, including the development of the biopharmaceutical cluster, the Incheon Global Campus and Yeongjong Complex Resorts - which make up about 67 percent of Korea’s free economic zones - are unprecedented on the global stage, according to experts.

“Many of the achievements have been made possible by the enthusiasm and efforts of IFEZ employees and the love and encouragement of Incheon citizens,” said the then IFEZ Commissioner Lee Won-jae. “IFEZ not only responds quickly to new environmental changes such as the fourth industrial revolution, but also will mobilize internal capabilities and utilize external resources to stand out as a global city in the world.“

A large number of foreign companies are taking an interest in investing or planning to invest in the Incheon Free Economic Zone, or IFEZ. The IFEZ is also making its effort to create the best business environment for foreign companies.

The IFEZ has so far secured 15 agreements amounting to $15.4 billion, 10 MOUs amounting to $12.6 billion, and 10 LOIs amounting to $549 million, for a total investment of $36.7 billion in 30 cases.

The Songdo area is most notable for attracting investment. It was able to secure 22 agreements for a total investment of $4.1 billion, while the Cheongna area secured two agreements for a total investment of $7.2 billion.

Fifteen years after Korea first introduced free economic zones to attract foreign investors, the country is seeking to turn a new chapter by transforming them into innovation hubs specialized by industries and regions.

According to the second FEZ plan (2018-2027) announced late last year, Korea plans to further foster seven such zones across the country by leveraging their geographic advantages and world-class industrial capabilities.

The government hopes to attract investments amounting to 80 trillion won ($71.48 billion) from domestic and overseas companies, while creating 270,000 jobs by 2027. or projects and agreements.

For businesses that want to expand into other markets utilizing the advantages of Asia, Korea is an attractive choice. It is located between the world’s second-largest economy China and third-largest Japan.

There are 147 Northeast Asian cities with more than 100 million population accessible within a direct three-hour flight.