April 25, 2008

By Kim Hyun-cheol (Korea Times Staff Reporter)

The government designated three more sites to develop into free economic zones (FEZs) Friday as part of efforts to attract more foreign investment.

A western coastal area, and zones in North Jeolla Province, and Daegu, North Gyeongsang Province were newly named as strategic hubs to revive the economy, the Ministry of Knowledge Economy said.

The area on the west coast includes Pyeongtaek, Gyeonggi Province and Dangjin, South Chungcheong Province, and will be developed into a center for global cooperation to compete with eastern Chinese economic districts on the opposite side of the Yellow Sea.

The Saemangeum-Gunsan zone in North Jeolla Province, to be established on a vast reclamation site, is to attract businesses for future industries and tourism.

The Daegu-North Gyeongsang area, the only inland FEZ, will specialize in information technology, machinery parts production, and the textile industry as well as medical and educational services.

The new FEZs will also be test beds for drawing foreign interests, capitalizing on their eligibility for building foreign facilities such as schools and hospitals, prior to nationwide deregulation.

Seoul officials hope that the new FEZs will serve to attract more inbound investment, however, the three existing FEZs are underutilized critics note, raising skepticism over the new designations.

The three in operation are in Incheon, Busan-Jinhae and Gwangyang, South Jeolla Province.

The government also announced a new regional development plan, in which six local specialized districts were designated including a water sports district in Chungju, North Chungcheong Province and a global education district in Cheonan, South Chungcheong Province.

hckim@koreatimes.co.kr

http://www.koreatimes.co.kr/www/news/biz/2008/04/123_23131.html