The duty-free zone in the Busan Port area has been expanded to 5.5 million square meters (59 million square feet) from 5.45 million, the Ministry of Commerce, Industry and Energy announced.
The expansion was suggested by the Ministry of Maritime Affairs and Fisheries in late December and was discussed by related ministries.
The government estimates that companies engaged in business within the newly designated area will save more than 21 billion won ($22.2 million) annually.
Fixed costs, including transportation, wages and others, will decrease 26 percent. Also, an extra 117,000 TEU, or 20-foot equivalent units, in containers would be processed at Busan Port, increasing its earning capacity by 8 billion won.
The decision will create 2,500 more jobs, the Commerce Ministry said.
Within the newly added area is the warehouse of the London Metal Exchange. The exchange operates 400 warehouses in 40 countries; Korea is host to 15 of them. The exchange keeps surplus metals in these installations and controls the flow of its metals in and out.
[Source: JoongAng Daily (March 5, 2007)]
