Foreign investors will be able to see that within the next two or three years three bustling international cities will be constructed in Korea's three free economic zones.
Such confidence was echoed in an exclusive interview with Mr. Kwon Tae-kyun, the newly inaugurated deputy minister for the Free Economic Zone Planning Office of the Ministry of Finance and Economy (MOFE).
In spite of the recent negative reports regarding free economic zones, the deputy minister stressed, "Our free economic zones will serve as a treasure-house to usher in a new engine of economic growth through our on-the-scene supervision and management of the special zones."
The year 2009, Kwon emphasized, will be a milestone for investors as they will witness the rebirth of the free economic zones starting from Incheon. In that year, many projects in Incheon will be completed. The Incheon Grand Bridge, he said, will fascinate visitors to Incheon when the landmark project is completed in October 2009 along with the 65-floor Asia Trade Tower to be completed in September 2009. "In addition," Kwon said, "the people will be able to confirm the growth of free economic zones through Incheon's City Expo to be held for 80 days in Songdo in the fall of 2009."
Desirable regulations
To forge a business-friendly environment, Kwon said the government is committed to do its best to lessen or eliminate regulations and coordinate related ministries to make the free economic zones more flexible and free. The deputy minister notes, "A progress has already been made to ease regulations and accelerate the development, and administrative procedures will continuously be simplified in the months and years to come."
"Only the key concerns related to the environment, health, and security will remain to be administered by the authorities, and truly international cities will be built to be run by highly efficient administrative systems," Kwon points out.
On concerns about the current state of the free zone project, he said that the current progress is at its initial stage of development and will turn into a rapid pace as the project gains momentum, and the project's future prospects will be bright when the initial phase of the project takes a concrete shape and foreign capital inflow begins in earnest. In such an environment, he stressed, Korea has to concentrate its efforts to build necessary infra in a relatively short period of time.
Proximity to the huge Chinese market
Korea's three free economic zones in Incheon, Busan, and Kwangyang are asked to present their visions to foreign investors more actively on a regular basis. "Basically, what we can provide is not the low wages of China or its huge market, but it is Korea's proximity to China and excellent living amenities that we are counting on," the deputy minister explained.
In Korea, he said, intellectual property rights are well protected and the ingenious manpower can create good synergy combined with the world-class IT and bio techs with a strong manufacturing base where the world-class airport and harbor are certain to make a difference.
To do so, Kwon added, the authorities will closely scrutinize the current system of a three-year exemption of corporate tax and bring in a set of more attractive incentives in coming years. What's more, he asserted that the reason behind the slow pace of foreign investment into the three free economic zones is that foreign investors haven't yet recognized their development possibilities in the years to come.
Continuous monitoring of FEZ projects
Positively assessing that the recently concluded Korea-US free trade negotiations and the upcoming 2014 Incheon Asian Games as good momentums to boost foreign investment, he added that the government will step up efforts to loosen the regulations with priorities given to free economic zones.
Commenting on what visions have been brought forward to set the zones apart from similar endeavors overseas, he predicted that the Incheon Free Economic Zone will be nurtured into a cosmopolitan city where tourism and IT and BT industries thrive based on a good infrastructure befitting a transportation hub with the world's highest-quality educational and medical services.
"When Yeosu wins its bid to host the 2012 World Expo," he continued, "Gwangyang will also draw much interest from foreign investors and Busan, too, will receive global attention as it has a strong manufacturing base linked with the textile industries to its north." "Metaphorically speaking," he said, "the current state of the economic zones is like an elementary student expected to be graduated from a university in 2015. As this is the case, the government will continuously monitor projects in the FEZs and keep a watchful eye so that the current businesses do not degrade into short-sighted pop-up businesses."
