April 24, 2024

• 

This is the second of three articles on Korea’s free economic zones -- Editor.

[THE INVESTOR] Two free economic zones in the southern region of South Korea -- Busan and Jinhae FEZ and Gwangyang Bay Area FEZ -- are close to becoming global logistics hubs soon.

The BJFEZ aims to link South Korea to Eurasia via Busan New Port, the world’s fifth largest.

“We will be a key logistics location connecting Rajin and Sunbong of North Korea, three northeastern provinces of China, and the Maritime Provinces and Vladivostok in Russia,” said BJFEZ Commissioner Jin Yang-hyun.

The hopes are high for a planned railway which will link Busan New Port, Trans-China Railway and Trans-Siberian Railway. This will allow BJFEZ to become a logistics center in Northeast Asia, according to authorities. 

Busan and Jinhae FEZ BJFEZ

It has an industrial cluster for shipbuilding, auto and machinery. The country has ranks No. 1 in shipbuilding and has the fifth-largest auto industry.

BJFEZ’s competitiveness has already started receiving positive reviews. It ranked first in the country’s FEZ performance evaluation this year, maintaining its top position for three consecutive years. It received the highest evaluation in business organization operations, development project promotion and investment attraction.

In October last year, BJFEZ was recognized as one of the top 12 special economic zones among 4,000 globally, by a US-based economic development trade magazine.

Also located off the East Sea is the Gwangyang Bay Area FEZ, located on the Pacific Ocean’s main sea route.

GFEZ aims to become a global trade center by combining the region’s strategic industries such as steel, petrochemicals and port logistics. 

It is adjacent to Korea’s leading steelmaker POSCO’s Gwangyang Steel Mill and the Yeosu National Industrial Complex and Korea Electric Power Corp.’s Energy Valley

It is the closest port in Korea to major ports in Northeast Asia such as Shanghai, Hong Kong, Osaka and Kaohsuing, making it an ideal location for shipping transit to the cities.

While offering industrial competitiveness for heavy and manufacturing industries, both regions also offer tourism attractions with beautiful nature and educational opportunities.

By Park Ga-young (gypark@heraldcorp.com)