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Mieum recently designated as foreign investment zone

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Companies to pay 1 percent of parcel price for 50 years’ use as gov’t intends to subsidize costs

Gangseo-gu District Mieum Industrial Complex has been designated as a foreign investment zone, a move that is sure to increase the number of foreign companies investing in the city. The Ministry of Knowledge Economy recently held a foreign investment screening committee meeting.

During this, it approved a resolution designating a 331,910-square-meter site within the complex for the use of non-Korean companies. The zone will receive 75 percent of its financial support from the government and 25 percent from the city budget, with plots to be loaned out for 50 years at just 1 percent sale of the parcel price. With this decision, Busan City can now receive 134.8 billion won ($116 million) of government support for purchasing the land, which will cost a total of 179.7 billion won. This is the largest scale of government support made to a local foreign investment zone.

The special zone at the Mieum Industrial Complex has five confirmed investors, including Germany’s Wilo Pumps. These companies will take up 217,862 square meters based on a total investment of $105 million.

With the zone having been approved, the local government is expecting to see foreign investment pour into the city.

This marks the second such zone in Busan City following the Jisa Foreign Investment Zone, although the size is considerably larger as Jisa only received 40 billion won from the government and spans just 298,142 square meters.

Busan City hopes the move will give the local economy a major boost by attracting companies in a range of fields.

“The designation of Mieum Industrial Complex as a foreign investment zone will accelerate moves to attract more companies to the area from overseas. We will support foreign companies’ investment in the city,” said a Busan official.

The source of news: Dynamic Busan