Busan is good

New commissioner talks on future of Busan-Jinhae FEZ

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The Busan-Jinhae Free Economic Zone has made great strides since opening in 2003. The zone has won about $4.6 billion worth of deals on investment from foreign investors. Six container berths of Busan New Port's envisioned 30 berths have already opened.

 

"Critics would view this not so great. But during the challenging three years, we made things out of nothing," said Kim Moon-hee, the new commissioner of the Busan-Jinhae Free Economic Zone Authority. Kim began his three-year term as the authority's second head on March 27 this year, replacing Chang Soo-man.

 

This year the new commissioner plans to complete ongoing development projects in the northern part of Busan New Port, Shinho Industrial Complex and Busan Science Industrial Complex. Development will also be more aggressively pursued in western parts of the BJFEZ and six designated investment sites in Jinhae.

 

The building of the Myeongji Bridge, Hwajeon Highway, Sosa-Noksan Highway, Euigok-Busan Science Industrial Complex Highway and Seokdong-Sosa Highway will see progress this year. Talks with the government to build Myeongji International City and Ungdong Resort Area within the BJFEZ will be increasingly pushed this year, Kim said.

 

For Kim, the BJFEZ's infrastructure, organization management and foreign direct investment are the three main elements of operation that must go together.

 

A softening of regulations involved in the investment process and reducing red tape to a minimum are the most immediate tasks for the commissioner.

 

Only about 36 percent of the whole BJFEZ area is categorized as designated development areas. To complicate matters further, most of the designated sites have restrictions on development due to "excessive" greenbelt and prime farmland regulations.

 

"The government should expand investment in infrastructure such as roads. About 50 percent of the allocated project budget is spent for ramps and highways approaching the economic zone, but the figure needs to go up to 70 percent," the commissioner said.

 

"More parks, greenery, drainage, and waste treatment facilities are also needed."

Socio-economic, environment and various other incentives are essential as well to the BJFEZ in order to compete with its regional competitors. Tax benefits currently applied to manufacturing, logistics, tourism and real estate industries should be expanded to the service sector, Kim stressed. Corporate tax rates should further go down to below the 15 percent-level, such as in looming regional competitors, China's Pudong and Singapore.

 

"All the development and investment talk cannot go alone. I will hold discussions with industry experts and government officials to solve the impending issues this year, and will continually suggest improvements to the government and the National Assembly," he said.

 

The BJFEZ has ushered in the second developmental stage this year. It will focus on completing ongoing development projects in 12 investment areas out of a total of 17 investment sites within the BJFEZ, excluding areas south of Busan New Port, Songjeong and Ungdong.

 

About 80 percent of the development projects will be completed during the second-stage period through 2011. Industrial infrastructure including ports, railways and roads will be all completed during the period.

 

The source of news : The Korea Herald 2007.05.03