Foreign direct investment is one source of creating jobs.
As such, the Korean government is making all-out efforts to boost foreign investment, which
is where Korea′s eight free economic zones come in.
Song Ji-sun reports.
"To attract more foreign direct investment, Korea has established eight free economic
zones over the past dozen years, with their total area amounting to 330 square kilometers...
or half the size of Singapore.
This one in Incheon was the first to be set up in 2003... and is the biggest of the eight."
Foreign investors can receive tax exemptions and incentives when setting up their businesses
in these free economic zones.
BMW is one of many enjoying the benefits since building its first driving center in Asia
at Incheon.
"It took years to choose the location through multiple feasibility tests, and we are fully
satisfied with our decision.
It′s close to the capital and the metropolitan area.
It′s close to the airport,... which enables us to provide maintenance service when our
clients fly out."
Korea seeks to become the center of East Asia in terms of investment...
by attracting more FDI in the eight free economic zones.
But further deregulation is needed to fight rising competition within the region... as
China and Taiwan also launched similar free trade zones last year.
"FDI coming into Korea if you go back to 2003, it′s gone up by about a factor of 3.
So it′s good progress, roughly on a par with other countries in Asia, but good, solid
progress.
The competition is there though.
I think that′s key.
Korea is not alone in doing this."
The researcher also points out that inefficiencies in labor and financial markets are slowing
things down,... while Korea′s infrastructure and high level of education stand out as advantages
compared to its global competitors.
Song Ji-sun, Arirang News.