The Ministry of Knowledge Economy designated the port areas of Ulsan, Gimje, Pohang and Pyeongtaek as new free trade zones on Monday (Dec. 8) and decided to enlarge such zones in Masan, Busan and Gwangyang.
The seven port zones are placed around the southern coast of the Korean peninsula - Pohang, Ulsan, Busan and Masan in the southeast (South Gyeongsang Province); Gwangyang and Gimje in the southwest (Jeolla Province); and Pyeongtaek in the west (Gyeonggi Province).
Free trade zones are given duty exemption, low rent and various tax breaks, a great environment for foreign investment and domestic exporters.
For the development of industrial complexes in Ulsan, Gimje and Masan, 466.8 billion won will be injected by 2014, 75 percent of which will be covered by the government.
Ulsan, a traditional auto, ship and petrochemicals producer, will diversify its industry into mechatronics, bio engineering and other high-tech businesses. For the next 6 years, 260 billion won will be invested in the Ulsan free trade zone, which will cover 130 hectares.
Masan, with 135.6 billion won of investment, will finish the renovation of a 40-year-old run-down industrial complex by 2016, when new companies and factories start running at full capacity.
Gimje free trade zone, upon completion in 2011, is expected to speed up the development of inland Jeollabuk-do (North Jeolla Province) supported by the nearby Saemangeum Gunsan Free Economic Zone. Gimje will focus on auto parts, machinery and energy-recycling industry with the investment of 70.5 billion won.
Ports in Pohang, Busan, Gwangyang and Pyeongtaek will together make an international logistics hub by 2014 and revitalize the national cargo industry, according to the plan.
The Ministry of Knowledge Economy expected that free trade zones of Ulsan, Gimje and Masan, together will create 370 billion won worth of production per year and 2,700 new jobs. Those in Pohang, Busan, Gwangyang and Pyeongtaek will increase yearly commercial traffic by 5 million TEU and create 186,000 new jobs, according to the forecast.
