Free Economy

The Busan-Jinhae Free Economic Zone headquarters building.
The Busan-Jinhae Free Economic Zone headquarters building.

 

The Busan-Jinhae Free Economic Zone (FEZ, Commissioner Huh Sung-gon) hosted a briefing session on the status of foreign investment in the Busan-Jinhae FEZ on Sept. 7. Eighteen people, including the commissioner, team leaders, and representatives of investors attended the event. 

The event was held with the purpose of examining the investments accrued so far, identifying problems, and establishing alternative strategies to realize the ultimate goal of attracting US$125 million.

According to the insiders, as of the end of Aug., the Busan-Jinhae FEZ has received investments via 21 separate cases, which together amounted to US$64.9 million but come short of the original goal by 48.1 percent. However, the situation turned out to be more hopeful on the ground, as the Myeong-ji Area in Busan was chosen as a preferred bidder for a multi-purpose area and succeeded in securing US$30 million for a business contract. The Mi-eum area is also expected to receive US$10 million in investment for a manufacturing sector.

In addition, the Nam-moon area and Ung-dong area of Gyeongnam Province are in the process of negotiating with investors for investments in the high tech and logistics sector, and are expected to receive investments that exceed US$125 million, the goal amount of the Busan-Jinhae FEZ.

Huh Sung-gon, the commissioner, said, “Despite shocks in the financial sector originating in China and spreading around the world beyond Asia and Europe, the Busan-Jinhae FEZ will overcome the challenge by targeting and focusing on key investment target sectors in relation to the logistics, shipbuilding, automobiles, and machinery industry clusters.” He stressed that the Busan-Jinhae FEZ should try hard to achieve the goal early this year.

Huh, the commissioner, is currently working to eliminate unnecessary regulatory restrictions for foreign investment. In particular, he is in the process of talking to government officials regarding 4 regulatory issues, including the restrictions relating to individual foreign investment.

Meanwhile, the Busan-Jinhae FEZ will host a briefing on investment targeting potentially-interested enterprises and investors, including the European Chamber of Commerce, at the Park Hyatt Hotel in Busan on Sept. 18.

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