South Korea on Monday designated two new free economic zones as part of efforts to further attract foreign investment to the country, a government committee said.
The two new areas ― one in the eastern province of Gangwon and the other in the central region of North Chungcheong Province ― were named candidate sites in September last year, according to the FEZ Planning Office governed by the Ministry of Knowledge Economy.
“Since their designation as candidate sites, the office has been working closely with related government ministries to finalize a development plan, which was recently completed,” it said in a press release.
The Gangwon FEZ will have four different districts, each specializing in distinct industries that include tourism and industrial materials. The new free economic zone will cost some 1.3 trillion won ($1.19 billion) to be completed by 2024, according to Park Han-seo, an official from the FEZ office.
The North Chungcheong FEZ will also have four different districts covering biomedical, research and tourism industries. It will take nearly 2 trillion won and eight years to develop.
“The economic impact of designating the new free economic zones will include an additional 17.2 trillion won in total output and 6.4 trillion won in added value,” the FEZ office said.
It said the free economic zones will also help attract foreign investment by offering tax breaks and other government support, creating around 83,000 new jobs.
South Korea currently operates six free economic zones, which in 2012 alone attracted $2.52 billion in foreign investment, accounting for 15.5 percent of the total $16.26 billion in foreign investment arriving here last year, according to the ministry. (Yonhap News)
