Samsung Will Invest W28 Tril. This Year

          In addition to current three free economix zones, the government of Korea has chosen three more sites to be additional free economic zones today. Of course, the major objective for taking such a decision is to attract and bring more foreign investments.

          The three new economic free zones are illustrated in the picture, they are; Pyeongtaek, Gyonggi Province and Dangjin, South Chungcheong Province, and West Sea Area. The government selected these sites as strategic hubs hoping to revitalize the economy.

          Each site has its purpose to be selected as free economic zones. First of all, as Daegu is not on the coastal side whereas all the other sites, the governmemt will specialize the site in IT, textile industry, and machinery parts production, according to the article. The Gunsan area will be under cultivation in order to attract future business and tourism. Furthermore, the West Sea Area will be targeted as "center for global cooperation to compete with eastern Chinese economics districts" (Koreatimes)

          Other three already existing economic free zones are Incheon, Jinhae in Busan. and Gwangyang whici is in South Jeolla Province. Since these free economic zones are under a lot of ciriticism and having some problems among Korean investors, such as lobbying or illegal transactions, many experts are raising doubts for having additional free economic zones.

          We have talked about this free economic zones (AKA FEZs) in Korea for several times in Korea, and noticed that there are some questions to be solved in order for Korea to fully benefit from these areas by "...drawing foreign interests, capitalizing on their eligibility for building foreign facilities such as schools and hospitals, prior to nationwide deregulation" (KoreaTimes). Also, I personally think Korean investors should stand back from these zones for the national interests. What have been the problems in existing FEZs is that instead of attracting foreign investments, Koreans are the ones who are buying out all the real-estates and blocking foreign investors to put money in those free economic zones. We always have to see a big picture, and if we do so, I blieve we would have more chances in the future with successes in the FEZs for having abundant foreign investments.

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

20601008 - 7th Entry