Open to China, Japan

 

As early as this year, container trucks carrying semiconductors and auto parts produced from free trade zones will be able to enter ports in Tianjin City and Shanxi, China and Osaka, Japan by freight ferries. The South Korean government plans to attract foreign investment by lifting restrictions on exports for free trade zones and free economic zones.

The Ministry of Trade, Industry and Energy (MOTIE) has announced a plan to activate foreign investment at a meeting of external economic ministers held on Aug. 26. Until now, domestic bonded factories designated by the Office of Customs Administration and foreign investment enterprises in free trade zones need to make reports of what they are carrying in and out every single time when trading. However, the procedure will be automatically processed in the future.

More ports will operate truck ferries as well. A truck ferry is a ferry service that transports container trucks without having to unload containers, which are loaded with export products, at ports. The MOTIE has decided to add Tianjin City, Shanxi, and Osaka to the areas that can run freight ferries. In particular, exportable products to Japan by truck ferry will expand from the current auto parts to semiconductors in the future. An official from the MOTIE said, “Now, it is possible to manufacture auto parts and semiconductors in free trade zones using parts from bonded plants, then directly export trucks loaded with them to China and Japan.”

Also, the limit of employing foreign workers of foreign firms in free economic zones will extended from the current 20 percent to 30 percent of total employees. Also, the length of a single stay permitted to foreigners who work for medical research and development institutes will increase from the current three years to five years.

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