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| High-rise buildings in Incheon Free Economic Zone (IFEZ) symbolize its aim to become a new global business hub in Asia. / Courtesy of IFEZ |
By Yoon Ja-young
Since its launch, the Incheon Free Economic Zone (IFEZ) has become a symbol of Korea's globalization. It is aiming to lead Korea's deregulation efforts this year, on top of improving surroundings for corporate investment.
Statistics last year show that the IFEZ has fulfilled its role as part of the country's economic forefront. The Foreign Direct Investment (FDI) to IFEZ last year totaled $1.7 bil., which is 95.7 percent of the total FDI in the country's eight FEZs, taking 9 percent of the whole FDI to the country.
It also attracted major businesses, including Daewoo International, ADT Caps, POSCO Engineering and POSCO A&C, as well as campuses by the University of Utah in the United States and Ghent University in Belgium.
Paradise City, a casino project LOCZ that passed review at the Ministry of Culture, Sports and Tourism, is now set for construction. CTF Group of Hong Kong has also handed in a letter of intent, with the government's real estate deregulation policy brightening the outlook for the numerous development projects in the IFEZ.
Despite the achievements made last year, this year is crucial for IFEZ. It could gain momentum to rise as a new global business hub in Asia, such as Hong Kong or Singapore, but it could also become just one of the ordinary new cities if it doesn't make progress.
Leading Korea's deregulation effort
IFEZ's biggest target is to be designated as a "deregulation demonstration zone." By being exempt from diverse restrictions applied to the metropolitan area, IFEZ expects to lead innovations in the country, helping it secure future growth engines and strengthen national competitiveness. Currently, a revision bill to designate IFEZ as the core of deregulation is pending at the National Assembly. The IFEZ expects to make some progress this year, with President Park Geun-hye apparently determined to tackle regulation issues in the metropolitan area.
To rise as a global business hub, it is focusing on attracting service industries. A plan to set Smart MICE Zone is a part of such efforts. MICE stands for Meeting, Incentive, Convention and Exhibition. "The MICE industry is related with diverse businesses including conventions, but there has been little industrial fusion among them. Smart MICE Zone aims at going comprehensive, from content and platform to networks," said a spokesperson for IFEZ.
"IFEZ is at the cross road. We will be doubling our efforts to continue development and attract investment," the spokesperson said. He said IFEZ will actively cooperate with Incheon City, vitalizing the economy of the city and making a leap forward together.
