The Gwangyang Bay Area Free Economic Zone (GFEZ) Authority aims to attract a total of USD1.3 billion in investment from domestic and foreign investors this year, a top official of the authority said.
"We plan to attract active investment from new generation clean energy, including solar energy and wind power, future-oriented products and food processing sectors to Gwangyang bay area in 2010," said Choi Jong-man, commissioner of GFEZ, said.
Up until now, traditional manufacturing companies centering on the steel and petrochemical fields have made active investment in the region.
The GFEZ Authority was launched in 2004 with the ambitious goal of making the area an international trade hub in Northeast Asia for the 21st century. It celebrated its sixth anniversary on March 24 this year.
"Our target for investment attraction will be focused on companies that can generate many jobs, produce container cargo and thereby contribute substantially to vitalization of Gwangyang Port," said Choi.
"Companies, which engage in advanced technology and materials industries and have great potential for sustainable growth, will also be welcomed," the GFEZ commissioner said.
Noting that the Gwangyang Port has set the 2010 target for container traffic volume at 2 million TEU, he said, "The GFEZ Authority will strive to achieve the ambitious target through active marketing activities both at home and abroad."
"In addition, the authority is developing or will develop seven industrial estates in the Gwangyang bay area to supply advanced industrial estates to domestic and foreign companies," he said, adding that the seven industrial estates are Hwanggeum, Yulchon No. 2, Sindae Hinterland, Haeryong, Sepoong, Galsaman and Daesong.
"Along with this, we will actively make the best use of such events as the F1 Korea Grand Prix, the EXPO 2012 Yeosu and the International Garden Exposition Suncheon Bay Korea 2013 to attract investment from Korean and foreign enterprises," said Choi.
Investment attraction
Commenting that the most effective way to create many jobs and activate the regional economy is the attraction of financially healthy and future-oriented companies, the commissioner said that the authority has already established a strategy to attract such competitive companies to the region.
"In line with this, we have selected some promising companies in the steel, assembly machines, precision chemistry, new materials, logistics, tourism & leisure, medical service and education sectors, and engaged in active promotion activities," said Choi.
For instance, the authority plans to attract large domestic and foreign companies that have high staff number, to the Jangdo region of the Yulchon No.1 Industrial Estate. They also plan to lure foreign-invested companies in the machinery and parts and shipbuilding equipment sectors to the free trade zone of the estate.
"For the Sindae Hinterland Industrial Estate, we are persistently pushing ahead with enticing schools for foreign students, state-of-the-art medical facilities for foreign investors and specialized universities," said Choi.
"At the same time, the authority will find out potential investment companies by building effective networks with KOTRA and the foreign chambers of commerce and industry in Korea that participate in major exhibitions at home and abroad in a bid to attract their investment in the region," said the commissioner.
Last May, Commissioner Choi visited Japan and succeeded in concluding an investment agreement with a Japanese company to build a solar energy parts factory in the Yulchon No.1 Industrial Estate.
In June, he also visited the Hunan Province in China and signed a letter of intent with a Chinese auto parts manufacturing company for a 20 billion won investment in the Gwangyang bay area.
The commissioner also engaged in negotiations to attract investment from yachting and high technology-related companies in France.
To increase container traffic volumes at Gwangyang Port, the commissioner also visited Tianjin, Qingdao and Hong Kong during the period from May 24 to 28 and staged active marketing activities there.
Thanks to economic recovery at home and abroad, container traffic volume at Gwangyang Port increased by 19.5 percent from a year earlier to 851,000 TEU as of the end of May.
"If this favorable trend continues, we can achieve the 2010 target for container traffic volume set at 2 million TEU. In the future, we will also closely check and analyze the trend of global harbor logistics industry and map out a proper strategy," he said.
Authority's 6-year achievements
Since its establishment in March 2004, the authority has attracted a total of 6.5 trillion won in domestic and foreign capital from 80 companies and created 17,165 jobs, greatly contributing to regional development, despite such difficult conditions, including economic slowdown both at home and abroad.
For development projects, industrial complexes were created such as the Yulchon 1 Industrial Estate and the Haeryong Industrial Estate, where about 80 companies such as Hyundai Engineering & Steel Engineering and Samwoo Heavy Industries have moved in or are building plants, engaging in active production.
"Of the 80 firms, in particular, 31 or 38.8 percent of the total are foreign companies, indicating that the Gwangyang bay area has succeeded in becoming an international trade stronghold," said Choi.
During the 2004-2009 period, 31 foreign companies invested a total of 2.5 trillion won in the Gwangyang bay area, compared with 2.8 trillion won invested by 79 foreign firms in South Jeolla Province. It represents 39.2 percent and 90.3 percent of the province in terms of the number of foreign companies and investment volume, respectively.
"It indicates that the degree of contribution of GFEZ to South Jeolla Province is very high," said the commissioner.
Cargo volume at Gwangyang Port also increased 53 percent from 1.19 million TEU in 2004 to 1.81 million TEU in 2009, playing a great role for activating the port, he said.
