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Free Trade Zone

	Free Trade Zones are areas in which efficient manufacturing, logistics and distribution
	activities are guaranteed through exemptions of certain customs and foreign trade regulations. The liberal trade environments in these areas are proteted by the law on the authorization and operation of free trade zones.

	Free Trade Zones are authorized by the Minister of Commerce, Industry and Energy
	following applications by representatives of the central government, or mayors or provincial governors. The zones can be set up in industrial complexes, airports, ports and their supporting facilities, such as industrial or distribution complexes or cargo terminals. These facilities must meet certain standards specified in the applicable laws and regulations.

Free Economic Zones

Free Economic Zones are designated to provide an improved management environment

and living conditions for foreign investors, to promote foreign investment, reinforce national competitiveness, and encourage balanced development among regions. They are given not only the infrastructure to attract foreign capital and technologies, but also exceptional tax and administrative benefits. At present, Free Economic Zones are designated in the
Incheon, Gwangyang Bay area and the Busan-Jinhae area.

Comparison of Three Free Economic Zones

	Incheon	Busan·Jinhae	Gwangyang Bay
Location and Area	Three Districts of Incheon(Songdo, Yeongjong, Cheongra)209.45 km2	Gangseo District in Busan, and Jinhae City and the neighborhood 104.26 km2	Gwangyang Bay Area (Yeosu, Suncheon, Gwangyang, Gyeongnam-Hadong) 88.95 km2
Key Plan	Aviation Logistics, Finance and High-tech Industries	Port logistics, industrial complexes, and F1 (international car race) race track	Port logistics, industrial complexes, and tourism
Key Projects	▲ Yeongjong District - Build a logistics and business complex - Construct an airport supporting city - Build the 2nd Island-land connecting bridge ▲ Songdo District - Build an international business center - Knowledge and information industrial complex, R&D, and IT - Extend the Incheon Subway Line 1 - Build the 3rd Seoul-Incheon Highway ▲ Cheongra District - Develop an international finance and leisure complex - Build an airport railroad	▲ New Port Area - Build the first six berths (250,000 Pyeong) by 2006 - Build additional 24 berths (950,000 Pyeong) by 2011 ▲ Myeongji Area - Construct housing and a general hospital for foreign companies’ CEOs. - Create a state-of-the-art production base for Renault-Samsung Motor and other companies ▲ Jisa Area - Attract a machinery and automotive related R&D center - Supply housing for the residents in the backend facilities of the New Port area ▲ Dudong Area - Build a car race track for F1 race in 2009 with an investment of 200 billion won.	▲ Gwangyang Port - Expand from eight berths to 33 berths to compete with Shanghai. - Construct an international marine business center, and logistics college in the 1.22 million Pyeong area of the rear site ▲ Yulchon Industrial Complex - Attract foreign companies in petrochemical, automotive parts and ironworks industries. - Expand the Yeosu Airport ▲ Shindeok District - Build a foreigners-only hospital and international school. - Build an international tourist city including a foreigners’ town ▲ Hwayang District - Entertainment facilities including golf courses, accommodation facilities and parks - Form a Tourism Belt in connection with the Hanryeo National Marine Park ▲ Hadong District - Build a functional city for industrial complex connected to the Gwanyang Ironworks

[Source: Ministry of Finance and Economy]

Last Updated on Dec. 17, 2004