FEZs Being Developed
Under Biz Hub Projects

NSCIS to open in 2008

The New Songdo City International School (NSCIS) has broken ground as the first foreign educational institution to be set up within the Incheon Free Economic Zone.
NSCIS will be opened in September 2008 with a combined enrollment of 21,000 students ranging from pre-kindergarten to grade 12. 10 percent of the total will be filled with Korean students, but the portion of Korean students can be expanded to up to 30 percent in the first five years after being opened.
Last December, NSCIS inked an MOU with the U.S. prestigious private educational group Milton Academy with the goal of becoming one of Asia's top international schools.
NSC, a joint venture between Gale International and POSCO E&C, will be responsible for offering land, buildings and facilities, while NSCIS will be managed by International Schools Services (ISS), a nonprofit corporation dedicated to excellence for children attending overseas schools worldwide. ISS, established in 1955, is the world's leader in providing a comprehensive range of quality educational services for schools, educators, families and corporations.
A groundbreaking ceremony for NSCIS held on March 8 was attended by Deputy Prime Minister -Minister of Finance and Economy Han Duck-soo, Gale International Chairman Stan Gale, NSC President John Hynes, NSC President Cho Yong-kyung, NSC Vice President Im Yeong-kyu.
In 2003, the government designated three free economic zones (FEZ) in Incheon, Busan-Jinhae and Gwangyang with the goal of developing Korea into a business hub of Northeast Asia. Countries, including Hong Kong, Singapore and China, have scrambled for becoming a business hub.
Capitalizing on their own strong points, the FEZs have strived to attract foreign direct investments by creating investment and living conditions corresponding to globally competitive regimes.
Korea still lags behind other countries in terms of the ratio of FDI to GDP.
According to a report released by the United Nations Conference on Trade and Development in 2005, the ratio stood at 8.1 percent for Korea, far below the global average of 21.7 percent.
Incheon Free Economic Zone (IFEZ) has geopolitical advantages: a vast market of the Seoul metropolitan area with a population of 25 million, backed by the Chinese market with a potential of becoming the world's largest market. IFEZ also has excellent manpower resources and Incheon International Airport, which is likely to establish itself as a hub port of Asia in 2008 when the ongoing second airport expansion project is completed.
IFEZ comprises of Songdo, Yeongjong and Cheongna Districts. Songdo District is being developed as international business and IT/BT high-tech hub. NSCIS will be situated within the New Songdo International Business Complex, where Songdo International City Convention Center has been launched as the first FEZ project in March 2005.
Besides NSCIS, such mega-projects as 65-floor Asia Trade Tower, hotel and other business facilities are to break ground one after another during the year, accelerating a bid to develop the Songdo District into an IT, BT and R&D hub.
Such factors are considered in attracting FDIs, including corporate management conditions, government restrictions, living environment and labor flexibility. As part of its efforts to become Korea a magnet of attracting FDIs, the government has provided diverse incentives as tax reductions, one-stop administrative service on development projects, relaxation of restrictions and other steps designed to ensure flexibility in the labor market. Foreign corporations located in the FEZ area will be 100 percent exempt from such taxes like income, corporate, acquisition, registration and property tax for the initial three years and 50 percent for the following two years. Foreign invested companies are not subject to such obligations as mandatory employment system.
Korea's living conditions for foreign businessmen are considered to be uncomfortable compared to its economic power as the global top 10 economy. Figures compiled by the American Chamber of Commerce in Korea (AmCham) in 2003 show that Korea was ranked 10th, trailing its rivals ― Tokyo (1st), Singapore (3rd) and Hong Kong (6th).
Foreigners residing in Korea have cited as the biggest huddles they experience educational and medial treatment issues. A survey conducted by KOTRA in 2005 reported that 30 percent of foreigners and 24 percent cite complaints about education and medical issues, respectively.
Deputy Prime Minister-MOFE Minister Han said, "The success of the FEZ will depend on whether the area is furnished with excellent international schools and hospitals on top of agreeable living conditions."In 2008, the international foreign school and hospital will be opened in the IFEZ and the following year, Incheon Bridge linking Incheon International Airport and Songdo, will be dedicated, making the Northeast Asia hub project a reality.
Woo Ki-jong, director-general of planning at the MOFE's FEZ Planning Office, said IFEZ is superior to China in terms of manpower, infrastructure and IT, and Koreans tend to be more creative and aggressive than Malaysians. Manpower is a key factor and problems like living conditions and language need to be addressed, he added. nw

Woo Ki-jong, director-general of planning at the MOFE's FEZ Planning Office

A ground-breaking ceremony for NSCIS held on March 8 was attended by Deputy Prime Minister -Minister of Finance and Economy Han Duck-soo and other dignitaries.