NEWS
Gwangyang Free Economic Zone Emerges as Mega Hub
Writer
administ
Posted at
2010-12-02
South Korea has been grooming a number of free economic zones over the past decade as it attempts to turn the country into a trade crossroad of global significance.
And among the brightest spots has been the Gwangyang Bay Area Free Economic Zone (GFEZ) located at the southwestern tip of the peninsula, which appears to be successfully exploiting its accessibility to China as well as Gwangyang Port’s massive trade presence in building the foundations for a mega business hub.
The Gwangyang zone ― covering 92.7-square kilometers and expecting to complete its three-phase development scheme over the next decade ― is the third-largest among the country’s six free economic zones following Incheon and Busan-Jinhae.
The free economic zones, which also include the Yellow Sea, Daegu-Geyongbuk and Saemangeum-Gunsan districts, represent the country’s efforts to provide an optimal international business experience through waived custom duties, reduced tax and regulations, and world-class facilities in airports, harbors and offices.
The Gwangyang bay area, which stretches across Yeosu, Suncheon and Gwangyang cities of South Jeolla Province and the Hadong region of South Gyeongsang Province, was designated as a free economic zone in Oct. 30, 2003. The area’s proximity to China is obviously the main strength, while POSCO’s Gwangyang Steel Works, which boasts the world’s largest capacity to roll out crude steel, and the Yeosu Industrial Complex, which puts out 56 percent of domestically produced petrochemicals, obviously makes the GFEZ more enticing for investors.
Although the Incheon and Busan-Jinhae zones have been generating the most buzz, the GFEZ has been quietly stepping up as a magnet for foreign investment, garnering $7.3 trillion from around 90 companies, both local and international, and creating more than 20,000 new jobs since opening in 2004. The investors included 33 foreign firms, such as SNNC of New Caledonia and Hong Kong-based Meiya Yulchon Power, and they have combined to make an investment of $2.62 billion.
By 2020, when the GFEZ will have filled out its frame, the area expects to be generating around 164 trillion won (about $141 billion) in production, directly or indirectly, 66 trillion won in value added, and supporting an urban population of 1.2 million.
The GFEZ Authority, which looks over the management of the free economic zone, is also hoping that large scale international events, including Expo 2012 Yeosu Korea and Suncheon Bay Garden Expo 2013, will improve the GFEZ’s exposure to potential investors around the world.
We were only designated as a free economic zone in 2003 and have been receiving lesser publicity than the other zones. And considering that we are not done building up our base infrastructure in sections other than the Gwangyang Port and Yulchon Industrial Complex I, the level of investment has been quite impressive,’’ Choi Jong-man, Commissioner of the GFEZ Authority, said in an e-mail interview.
We have been successfully developing the free economic zone in a way that it takes advantage of the strengths provided by the Gwangyang port and the area’s vibrant steel industry, and our attentive support to foreign investors has also stood out. We are currently collaborating with six institutions to provide high-level education and medical services to foreigners to help them settle.
However, we also need to find ways to respond to the pace of foreign investment that has been slowing since 2007 and our conditions for fostering a satellite city to support the business and industrial districts aren’t as favorable as in other free economic zones.’’
The GFEZ Authority ranked second in the Ministry of Knowledge Economy’s performance assessment of the big-three’’ FEZs this year, the other being Incheon and Busan-Jinhae, and was well-reviewed for its distinctive advantages in port and steel works, industrial integration around the Gwangyang bay area and support for foreign investors.
Our goal for this year is to attract $1.3 billion won in investments and increase Gwangyang Port’s capacity to 2 million twenty-foot equivalent units (TEU). At the end of September, nine companies, including SPP Heavy Industries, invested $4 billion in the GFEZ and their projects are expected to create 2,000 additional jobs, and there are other mega projects currently in the pipeline,’’ Choi said.
The cargo volume at Gwangyang Port was at 1.56 million TEU by the end of September, up 17.6 percent from last year’s numbers, and this puts us on course to reach our target.’’
Development on course
The GFEZ is currently under the first of its three-stage development plan that covers 12 of 22 complexes. The GFEZ authority will invest 15.7 trillion won in the zone throughout the three phases.
The process has been progressing smoothly, with the earlier phase of the construction for the renewed Gwangyang port container and POSCO’s CTS (central terminal system) facilities being completed recently.
Particularly vibrant has been the Yulchon Industrial Complex I, which is currently 82 percent occupied and expects to be fully booked by the end of the year. The complex’s 58 tenants include Hyundai Engineering and Steel Industries, Daewoo Shipbuilding and Marine Engineering, SPP Group and Orient Shipyard.
The work at other sections, including the Yulchon Industrial Complex II, Gwangyang Sepoong industrial complex and the Hwanggeum industrial complex is also progressing quicker than scheduled.
The GFEZ Authority expects the Yulchon Industrial Complex II, which measures 8.9-square kilometers, to be completed by 2020 through an investment of 1.16 trillion won, with 859 billion won used to build the industrial complex and 308 billion won used on harbor infrastructure. The complex is being jointly developed by the Ministry of Land, Transport and Maritime Affairs and the GFEZ, with Hyundai Engineering and Construction and Daewoo Engineering and Construction recently signing memorandum of understandings (MOUs) to participate as builders.
The licensing procedure for the industrial complex is to be completed by 2011 and construction will begin in 2012, which will enable the complex to be providing industrial estates from as early as 2014.
Yulchon II is planned as a hub for companies involved in labor intensive, but value-added industries like electronics, non-metallic minerals, transportation facilities and equipment, and precision medical equipment.
The Gwangyang Sepoong complex, which will be completed by 2015, represents a 360.6 billion won project that is currently in the process of picking its builders and conducting feasibility studies to set up a special purpose company. The complex is designated as a center for primary metals, information and communication technologies, and food products.
The GFEZ Authority will spend 267 billion won on the Hwanggeum complex, which is to be completed by 2015, and a preferred bidder for the rights to construct the complex is to be chosen sometime during next month. The complex is planned as a hub for manufacturing firms, transportation companies and also research and development (R&D) centers.
The Hadong District, which comes down to building a state-of-the-art shipyard on the Galsaman reclaimed land, is also progressing smoothly and will be completed by the end of 2012. Accessibility will be essential, and the plan is to link the new shipyard to a nearby national highway.
Source: The Korea Times (Nov. 22, 2010)
And among the brightest spots has been the Gwangyang Bay Area Free Economic Zone (GFEZ) located at the southwestern tip of the peninsula, which appears to be successfully exploiting its accessibility to China as well as Gwangyang Port’s massive trade presence in building the foundations for a mega business hub.
The Gwangyang zone ― covering 92.7-square kilometers and expecting to complete its three-phase development scheme over the next decade ― is the third-largest among the country’s six free economic zones following Incheon and Busan-Jinhae.
The free economic zones, which also include the Yellow Sea, Daegu-Geyongbuk and Saemangeum-Gunsan districts, represent the country’s efforts to provide an optimal international business experience through waived custom duties, reduced tax and regulations, and world-class facilities in airports, harbors and offices.
The Gwangyang bay area, which stretches across Yeosu, Suncheon and Gwangyang cities of South Jeolla Province and the Hadong region of South Gyeongsang Province, was designated as a free economic zone in Oct. 30, 2003. The area’s proximity to China is obviously the main strength, while POSCO’s Gwangyang Steel Works, which boasts the world’s largest capacity to roll out crude steel, and the Yeosu Industrial Complex, which puts out 56 percent of domestically produced petrochemicals, obviously makes the GFEZ more enticing for investors.
Although the Incheon and Busan-Jinhae zones have been generating the most buzz, the GFEZ has been quietly stepping up as a magnet for foreign investment, garnering $7.3 trillion from around 90 companies, both local and international, and creating more than 20,000 new jobs since opening in 2004. The investors included 33 foreign firms, such as SNNC of New Caledonia and Hong Kong-based Meiya Yulchon Power, and they have combined to make an investment of $2.62 billion.
By 2020, when the GFEZ will have filled out its frame, the area expects to be generating around 164 trillion won (about $141 billion) in production, directly or indirectly, 66 trillion won in value added, and supporting an urban population of 1.2 million.
The GFEZ Authority, which looks over the management of the free economic zone, is also hoping that large scale international events, including Expo 2012 Yeosu Korea and Suncheon Bay Garden Expo 2013, will improve the GFEZ’s exposure to potential investors around the world.
We were only designated as a free economic zone in 2003 and have been receiving lesser publicity than the other zones. And considering that we are not done building up our base infrastructure in sections other than the Gwangyang Port and Yulchon Industrial Complex I, the level of investment has been quite impressive,’’ Choi Jong-man, Commissioner of the GFEZ Authority, said in an e-mail interview.
We have been successfully developing the free economic zone in a way that it takes advantage of the strengths provided by the Gwangyang port and the area’s vibrant steel industry, and our attentive support to foreign investors has also stood out. We are currently collaborating with six institutions to provide high-level education and medical services to foreigners to help them settle.
However, we also need to find ways to respond to the pace of foreign investment that has been slowing since 2007 and our conditions for fostering a satellite city to support the business and industrial districts aren’t as favorable as in other free economic zones.’’
The GFEZ Authority ranked second in the Ministry of Knowledge Economy’s performance assessment of the big-three’’ FEZs this year, the other being Incheon and Busan-Jinhae, and was well-reviewed for its distinctive advantages in port and steel works, industrial integration around the Gwangyang bay area and support for foreign investors.
Our goal for this year is to attract $1.3 billion won in investments and increase Gwangyang Port’s capacity to 2 million twenty-foot equivalent units (TEU). At the end of September, nine companies, including SPP Heavy Industries, invested $4 billion in the GFEZ and their projects are expected to create 2,000 additional jobs, and there are other mega projects currently in the pipeline,’’ Choi said.
The cargo volume at Gwangyang Port was at 1.56 million TEU by the end of September, up 17.6 percent from last year’s numbers, and this puts us on course to reach our target.’’
Development on course
The GFEZ is currently under the first of its three-stage development plan that covers 12 of 22 complexes. The GFEZ authority will invest 15.7 trillion won in the zone throughout the three phases.
The process has been progressing smoothly, with the earlier phase of the construction for the renewed Gwangyang port container and POSCO’s CTS (central terminal system) facilities being completed recently.
Particularly vibrant has been the Yulchon Industrial Complex I, which is currently 82 percent occupied and expects to be fully booked by the end of the year. The complex’s 58 tenants include Hyundai Engineering and Steel Industries, Daewoo Shipbuilding and Marine Engineering, SPP Group and Orient Shipyard.
The work at other sections, including the Yulchon Industrial Complex II, Gwangyang Sepoong industrial complex and the Hwanggeum industrial complex is also progressing quicker than scheduled.
The GFEZ Authority expects the Yulchon Industrial Complex II, which measures 8.9-square kilometers, to be completed by 2020 through an investment of 1.16 trillion won, with 859 billion won used to build the industrial complex and 308 billion won used on harbor infrastructure. The complex is being jointly developed by the Ministry of Land, Transport and Maritime Affairs and the GFEZ, with Hyundai Engineering and Construction and Daewoo Engineering and Construction recently signing memorandum of understandings (MOUs) to participate as builders.
The licensing procedure for the industrial complex is to be completed by 2011 and construction will begin in 2012, which will enable the complex to be providing industrial estates from as early as 2014.
Yulchon II is planned as a hub for companies involved in labor intensive, but value-added industries like electronics, non-metallic minerals, transportation facilities and equipment, and precision medical equipment.
The Gwangyang Sepoong complex, which will be completed by 2015, represents a 360.6 billion won project that is currently in the process of picking its builders and conducting feasibility studies to set up a special purpose company. The complex is designated as a center for primary metals, information and communication technologies, and food products.
The GFEZ Authority will spend 267 billion won on the Hwanggeum complex, which is to be completed by 2015, and a preferred bidder for the rights to construct the complex is to be chosen sometime during next month. The complex is planned as a hub for manufacturing firms, transportation companies and also research and development (R&D) centers.
The Hadong District, which comes down to building a state-of-the-art shipyard on the Galsaman reclaimed land, is also progressing smoothly and will be completed by the end of 2012. Accessibility will be essential, and the plan is to link the new shipyard to a nearby national highway.
Source: The Korea Times (Nov. 22, 2010)