By Yi Whan-woo
The operator of the Busan-Jinhae Free Economic Zone (BJFEZ) said Tuesday it has completed construction on seven of the 20 districts inside the zone, since construction work started in October 2003.
The zone, which spans 82.3 square kilometers of land between Busan and Jinhae in the southeastern part of Korea, is being developed into a Northeast Asian economic hub.
The BJFEZ Authority said the construction of six other districts is now underway. It will set up a detailed construction plan for the remaining seven districts by August with a view to completing the construction of the FEZ by 2020.
Once the construction is fully completed, the FEZ will be comprised of a multi-functional port, international business districts, foreign schools, hospitals as well as tourism and leisure facilities that provide "top quality service" for foreign and domestic firms, the operator said.
For instance, the BJFEZ Authority currently runs 23 berths. It plans to increase the number of berths to 45 by 2020, making the FEZ the world's fifth-largest cargo processing port.
"We look forward to providing the best business opportunity to our investors," BJFEZ Authority Commissioner Seo Seok-soong said.
Of the six districts that are being built, the Ungdong, Namsan, Wasung and Ungcheong districts have been developed for recreational and resort areas, as well as a logistics service complex.
The Nammon District will be used as a research and development complex, while the Namyang District serves as a high-tech industrial complex.
The BJFEZ is now home to a total of 920 investors, including 100 foreign companies. The direct investment from abroad has totaled $1.66 billion. Some $1.1 billion won was spent on developing cutting-edge industries such as information technology. An additional $402 million was spent on construction of berths, $124 million for logistic services and $20 million for education.
The foreign firms include Tsubakimoto Automotive Korea, the local unit of the Tsubakimoto Chain, a Japanese auto parts manufacturer.
It officially completed its $2.5 million auto parts plant inside the BJFEZ in 2011. Wilo Korea, a local branch of German pump manufacturer Wilo SE Group, invested $30 million in 2010 to set up a plant in the area.