Port & Logistics

Development Plan

To secure large scale container terminals and freight-handling space
To establish multimodal transportation system
To invite logistics and manufacturing companies of high added-value and thus to enhance the New Port’s logistics competitiveness.

Located right behind the Busan New Port along major trunk routes going to Europe and North America.
Connectivity by securing more than 300 regular services.
Well-built Land-Sea-Air transportation system by diversified background transportation facilities such as hinterland road, railroad and Airport.
Competitive rental rate(32 ~ 483 Korean Won㎡/month)
* Differential rate depending on the type of business and the amount of foreign direct investment.
Long term leases (30 + 20years) through competitive bid
Various incentives to tenants by designation of the port hinterland as “Free Tree Zone(FTZ)”

Current status of the Northern Port Hinterland
Classification	Completion of Site Preparation	Total Area / Lease Area	Companies in Operation
Stage 1	2005. 6	64,997㎡/51,879㎡ (16.0611ac/12.8195ac)	2 companies: BIDC, CFS
Stage 2	2006. 12	424,488㎡/366,677㎡ (104.8932ac/90.6078ac)	7 companies: Dongbang ,Korea Express, BND, FCL, Sebang, BIDC, C&S
Stage 3	2008. 12	493,896㎡/367,163㎡ (122.0443ac/90.7279ac)	10 companies: Hanjin Kerry Logistics, DKLC, MS Distripark, Beomhan Pantos, etc.
Stage 4	2010. 12	220,822㎡/204,546㎡ (54.5663ac/50.5444ac)	8 companies selected: Fuji Global Distribution Center, SI Logistics, Hanjin Shipping Consortium, Bogo COLD, SW International, etc.

Lease method: Long term lease through competitive bids (Selecting Organization: Busan Port Authority)
Lease period: 30 years with additional 20 years of extension
Selection: Entrusted to Evaluation Committee to ensure objectivity and fairness.
- Criteria and additional points: A comprehensive evaluation of business capability, operation plan, construction plan with emphasis on capability of attracting cargos
- When MOU has been signed with relevant authorities, additional points (+3) will be given.
- Depending on the foreign investment ratio, additional points (+1 ~ +5) will be given.
- Manufacturing companies whose exports exceeded 50% of their annual turnover for the previous year can obtain 5 additional points.
Move-in Procedure
- Notice of invitation for the lease → Submission of business plan → Evaluation of the business plan → Selection of priority negotiators → Negotiation and conclusion of contracts

Leasing Fee: Differential rate depending on the type of business and the amount of foreign direct investment.

Leasing Fee: Differential rate depending on the type of business and the amount of foreign direct investment
	Conditions	Changed Rent
New Port Hinterland	Basic Lease(manufacturing)	482 KRW/㎡ a month
	Preferential Lease (Logistics)	321 KRW/㎡ a month
	The tenants that have not fulfilled the requirements of the lease	5% of the appraisal value of the land per year

Leasing Fee Exemption
FDI Over USD 5 Million	50% (For 3 Years)
FDI Over USD 10 Million	50% (For 5 Years)

Designation
- 2004. 12. 31(Ministry of Industry & Resources, Notification 2004-139)
- 2008. 12. 8 (Ministry of Knowledge Economy, Notification 2008-174)
- 2009. 9. 3 (Ministry of Land, Transport and Maritime Affair, Announcement of Designation)
Name: Busan Port Busan・Jinhae Free Trade Zone
Area: 7,967thousand㎡ (1,968.6885ac)