Chungcheongnam-do

The zoning of the Yellow Sea Coastal Areas as a Free Economic Zone driven by the Chungnam Province and the Gyeonggi Province was confirmed on April 25, 2008. The Korean Central Government finally confirmed and announced the zoning of the Yellow Sea Free Economic Zone over the 5 districts as Songak, Inju, Jigok, Poseong and Hyangnam in the 2 Provinces.
Near that Free Economic Zone is located the largest industrial cluster of the next-generation engine industries. Such famous companies as Samsung Electronics, Hyundai Motors, Kia Motors, Ssangyong Motor, Renault Samsung Motors are clustered in the Zone. Moreover, many R&D Centers, Colleges and relevant businesses also situated in near areas. These excellent surroundings give investors the best chance to invest domestic and foreign capitals and make this zone the world-class industrial cluster.

Orienting a World-class Free Economic Zone
The Yellow Sea Free Economic Zone allowing foreigners’ free investments will be developed under the 3-step plan of differentiation strategy especially in such high-tech industries as Auto Parts, IT and BT by 2025.
This zone covers 5 districts as Dangjin, Asan, Seosan in Chungnam and Pyeongtaek, Hwaseong in Gyeonggi. The total areas consisting of 29.6mil. m2 area in ChungNam and 25.4 mil. m2 in GyeongGi reaches to 55 mil. m2. And the limited development districts of 2.42 mil. m2 are included among those areas.

The detailed development plans by district are as follow. At first, Songak District in Dangjin will be specialized in industries of Auto Parts, Electronic-Information and International Business. Inju District in Asan will be developed into the Center of Display, Semi-conductor industries and Tourism businesses. Jigok in Seosan County will be specialized in High-tech Auto Parts and Poseong in Pyeongtaek as a district for High-tech, International physical distribution, International business and Tour Resort industries. Finally Hyangnam district in Hwaseong will grow into a global mecca in Bio industries.

The Effects of Zoning as a Free Economic Zone
There are many effects we could get by zoning a district or an area as a FEZ.
First of all, many plans such as for town development, residential land development, industrial complex and tourism complex can be appointed, authorized and changed all at once in a FEZ. Secondly, swift authorization of projects enables companies to start a new business quickly and induce necessary investments. Thirdly, local authorities can give diverse advantages like discounts of taxes and rental fees, deregulations for the foreign companies. Moreover, many conveniences and facilities will be provided such as translation service in administrative processing for foreigners, establishing education facilities for foreigners, opening of hospitals and drug stores only for foreigners, permitting of casinos for foreigners, and enlarging the range of transmitting foreign broadcastings.

Establishment of the Yellow Sea Free Economic Zone Office in DangJin
Chungnam Province and Gyeonggi Province agreed to establish Yellow Sea Free Economic Zone Office in Dangjin to provide efficient administrative services and improve business environments for foreigners. According to the roadmap, competitive development companies which can build a world-class city will be selected at first and the executive plans will be confirmed. Then those plans will be commenced next year and finally the office will be opened by July, 2008. The Office is expected to devote total strength, with the full supports of central government, for constructing necessary facilities and inducing foreign companies to move in the zone. And the office is anticipated to go smoothly and expedite the development works.

Contributions in Economic Value Added and Employment
KIET(Korean Institute for Industrial Economics & Trade) reported that the total economic outcome from the development of Yellow Sea Free Economic Zone will amount to 11 Billion Won(KRW) of the induced productions, 3.35 Bilion Won of the increase of value added and 59,498 of the increase of employment.
A official concerned of Chungnam Province told that “Yellow Sea Free Economic Zone will make best efforts to compete with world-class free economic districts such as Dubai, Singapore, Phudong, etc. and become the most charming and dynamic district on which many companies invest with willingness.”