Money to Busan
After taking office on March 12, Busan-Jinhae Free Economic Zone Authority (BJFEZ Authority) Commissioner Heo Seong-gon is taking the lead in attracting foreign investment to meet the target of US$125 million (145.06 billion won) in order to accelerate its current depressed development.
He plans to review what the authority had done to generate the investment in the first half of the year when it struggled to do so, due to the economic crisis initiated in the Eurozone, the constant weak yen, and the MERS virus outbreak scare, and to adopt careful and aggressive strategies in the second half of the year in a bid to fast track the goal for the year.
As of the end of June, the BJFEZ Authority drew US$40 million (46.42 billion won) of foreign investment, signed MOUs for US$30 million (34.82 billion won) with China’s CSSI Co., Ltd., US$14 million (16.25 billion won) with Japan’s Nippon Express, and US$10 million (11.6 billion won) with Japan’s Naigai Trans Line Co., Ltd. The authority also has new investment plans such as receiving a US$26 million (30.17 billion won) letter of intent to invest in the Ungdong District from nine logistics companies, including Senko Korea Corp.
Moreover, the authority will hold a “2015 BJFEZ Investment Promotion Conference” at Park Hyatt Busan in Haeundae, Busan, on Sept. 18 for foreign investment firms such as the European Chamber of Commerce in Korea (EUCCK), the China Chamber of Commerce, and member companies of the Seoul Japan Club. In addition to creating an atmosphere more favorable to investment, it plans to actively push ahead with investor relations (IR) for target firms in other countries, and to exceed the foreign investment goal for the year early.
After taking office, Huh met officials from the nation’s leading conglomerates, including Hanwha, Lotte, and Doosan, the Bank of China, and the EUCCK in order to successfully push ahead with the Ungdong Global Theme Park Project in Jinhae. While spearheading in the investment promotion activities, he also met officials from other agencies in the region such as Busan Port Authority, Changwon City, and Gangseo District, to come up with cooperation plans and draw attention and support for a better investment environment.
Huh said, “Following the first half of the year, we will also carry out active and aggressive activities to attract foreign investment, including investment promotion meetings for target companies in Europe, the Americas, and Asia, in the second half. So, we will make it the first year to realize the BJFEZ as the hub of logistics and business in the world.”
In the BJFEZ, the Dudong District in the Gyeongnam region, in which 15 distribution firms locate and create jobs for 5,000 people, will start developing in the second half of the year. Once a pleasant residential environment for foreigners is provided by developing the Myungji District multi-functional complex in Busan and creating the global campus town, foreign investment is expected to increase.
According to data from the 2014 free economic zone performance evaluation on July 25, the BJFEZ newly invited 23 companies and created 1,200 jobs in 2014 alone, being ranked third among the six free economic zones that completed their development despite poor conditions.