IFEZ Spreads Its Wings

A free economic zone to be the newest business-friendly hub of Northeast Asia

The Incheon Free Economic Zone (IFEZ), celebrating its fourth anniversary this month, is shaping up to be a leading business city of the Northeast Asia as investor attention and international recognition has been mounting.
Taking a look at the achievements IFEZ has made for the past four years, projects on the construction of landmark facilities and infrastructure have been proceeding at a brisk pace. The convention Center, named Songdo Convensia, will open next October and the Songdo International School will be open soon as well. The construction of the skeleton of a 64-story housing-commercial complex structure is nearing completion. Meanwhile, the 151-story Incheon Tower is scheduled to break ground early next year and the Incheon Bridge linking Songdo and Yeongjong will open to traffic in October 2009. A subway extension leading to Incheon is under construction and five parks in Songdo, dedicated recently, serve as resting space for Incheon citizens.
The Incheon Free Economic Zone Authority (IFEZ Authority) CEO Lee Hwan-kyun says, "The future of IFEZ is bright."Lee commented that the Korea-U.S. Free Trade Agreement, in the parliaments of both nations for approval, would boost momentum for attracting foreign investment into IFEZ, and Incheon's winning the right to host the 2014 Asian Games along with an improvement in inter-Korean ties would lay the foundation for a successful development of the free economic zone.
Lee said that IFEZ, now four years old, is gaining recognition and foreign investors are increasingly showing an interest.
Despite its belated launch compared to its rival cities, including Singapore, Hong Kong and Shanghai, IFEZ has geopolitical advantages and strong points to offer foreign investors.
IFEZ is a geographically optimum place to serve as a hub city of the Northeast Asia. Incheon is in close proximity to China and has 61 cities, each with a population of more than 1 million, within a distance of a 3 hour-flight from the Incheon International Airport.
In particular, Incheon has optimum conditions for establishing a bridgehead for promoting inter-Korean exchanges as it is close to the vast market of the Seoul Metropolitan area, with a population of some 22 million, as well as the Gaeseong Industrial Complex in North Korea. Making the most of these geopolitical advantages, the IFEZ is striving to realize a goal of constructing an international city of the 21st st century to make it a Northeast Asian hub of business, logistics, information technology, bio-technology, R&D and leisure.
Secondly, IFEZ has a world-class airport and a container sea port. The Incheon International Airport, which ranks first in global aviation service and second in cargo, and the 120 year-old Incheon Sea Port have been expanded or refurbished to offer comprehensive sea and air logistics systems.
Thirdly, IFEZ has proximity to high-tech manufacturing complexes in the Incheon and Seoul metropolitan areas as well as a potential for connection with front and rear industries. It has the advantage of securing IT/BT and other high-tech manpower at ease.
What strategy has been designed to develop the IFEZ, then's The master plan calls for the creation of the best business center in Northeast Asia with the most attractive business environment and living conditions where global companies freely make investments and conduct business.
The IFEZ comprises of three areas, Songdo, Cheongna and Yeongjong, collectively , encompassing 209 million sq. kilometers, equivalent to 70 times more area than the island of Yeouido in Seoul. With a projected population of 487,000, the IFEZ development will cost 14.7 trillion won only for basic infrastructure projects during a period between 2003 and 2020. The first phase between 2003 and 2009 and the second phase between 2009 and 2014.
The 53 sq. kilometers-wide Songdo area is slated to be developed into an international business and IT/BT/high-tech industrial city
Projects like the planned 65-story Northeast Asia Trade Center, the Central Park, a luxury hotels,
an ecological garden, office buildings, residential complexes and a foreign hospital are scheduled to be built there.
The IFEZ Authority is developing the Yeongjong area, encompassing the Incheon International Airport, into an aviation/logistics hub. The area covering 138 million sq. kilometers will be developed into a self-sufficient city with such functions as international tourism, aviation/logistics, industry and residential housing.
The Cheongna area District covering 18 sq. kilometers will be developed into an international financial/tourism/ leisure center. It will house an the projected Asian Village, a international financial district, a theme park, golf courses, a floricultural complex, and GM Daewoo Motor R&D Center.
The IFEZ Authority is striving to create the world's first ubiquitous-city by realizing a a next-generation digital city paradigm .
In an effort to differentiate itself from rival cities, the IFEZ is adopting three strategies. First, the construction of a state-of-the-art informatization city - the world's foremost 'intelligent'city furnished with ubiquitous wireless network systems. The second policy is to make it a pleasant, environmentally friendly city with the forested area accounting for 36 percent of the total area. And finally, to make it a city of beauty, with the introduction of such advanced new transportation systems as bus rapid transit. IFEZ is throwing its heart and soul into building a quality city through urban landscape management and public infrastructure construction and management.
In an effort to attract foreign investments, IFEZ offers foreign occupant companies such diverse tax benefits as a three year exemption from national and provincial taxes and a 50 percent reduction for the next two years; exemption from seven surcharges (except the surcharge on development), and exemption from customs charges on imported capital for three years.
The free economic zone provides financial support in creating sites for rent to foreign firms, a reduction in land rents, establishment of amenities for foreigners and key infrastructure like roads.
It also offers such incentives as the relaxation of restrictions imposed on companies in the Seoul metropolitan area, and exemption from such obligations as monthly paid leaves, business arenas exclusively reserved for small and medium-size enterprises, and mandatory hiring of the physically handicapped and elderly.
Despite internal and external difficulties in attracting foreign investments, the IFEZ Authority signed a total of 31 contracts and MOUs worth $36 billion as of September 30, 2007.
It has attracted the world's top-class medical and educational institutions to provide education and health care to the children of foreign residents.
The IFEZ Authority is striving to create a comfortable environment for foreign residents that feels like a home away from home. nw

Incheon Mayor Ahn Sang-soo and IFEZ Authority CEO Lee Hwan-kyun pose with leaders of the Portman consortium after inking an MOU on the development of the Songdo International City Zone 6 & 8, including the construction of the planned landmark Incheon Twin Tower on Aug. 27, 2007. (right photo) Incheon Free Economic Zone Authority CEO Lee.

An artist's conception on the Incheon Bridge linking Yeongjong and Songdo, now under construction.