The following was printed in the Korea Herald on Dec. 22

Busan-Jinhae FEZ aims for success in 2006

Still tingling from the success of the Asia-Pacific Economic Cooperation summit, Busan-Jinhae Free Economic Zone is out to carve a bigger slice of the foreign investment market next year, zone authorities said yesterday.

"We're proud of the achievements we have seen so far and plan to launch new strategies for attracting even more investors who already see much potential in the zone's geographic location and thriving industries," said Chang Soo-man, commissioner of the zone authority.

During the APEC summit that wrapped up last month, the zone attracted some $90 million worth of foreign investment from memoranda of understanding with world-leading corporations.

This latest achievement follows a string of ties with foreign investors that reaped $3.7 billion worth of investment over the past one and a half years.

Under the commissioner's lead, Busan-Jinhae participated in various high-profile events such as the Investment Environment Presentation Meeting and the CEO Summit.

The extra effort helped the zone engage in individual consultations with 24 companies and talks with nearly 100 sources of potential investors.

Among the memoranda the zone signed are those with SKF, a Sweden-based bearing manufacturer which intends to construct a 33,058 square meter factory in the Foreign Investment Zone within the Busan Science & Industrial Park. SKF signed on to invest $50 million into this Busan factory.

Ezumi, a Japanese auto electronics parts manufacturer, signed another memorandum worth $3.6 million for a 9,917 square meter factory also within the science and industrial park by 2008.

Zone authorities are putting together a database on the potential investment information collected during the meetings to maximize the effect of the APEC summit.

Already, industry watchers say the appeal that this scenic city has for foreign investors will go well beyond the summit.

Scheduled for completion by 2020, the economic zone's development plan consists of the following areas and functions: The New Port area, which includes the hinterland and distribution park to serve logistics and distribution purposes; the Myeongji New City project to hold major businesses, international schools and hospitals and residential complexes; the Jisa Area which will house the Busan Science; and Industrial Park for high-tech and R&D industries.

The New Port is slated to open in January. And by 2011, the zone expects to become home to a new 30-berth container port.

To celebrate the opening ceremony of the New Port, Commissioner Chang plans to invite around 100 foreign CEOs of global companies and foreign journalists.

Other incentives, such as low rental costs, generous tax breaks, flexible labor laws for employers and polished residential areas for foreign investors, will also be available. Hospitals and personal administrative services will also be instructed to meet the standards and needs of foreign residents.

A recent law revision that relaxed the size-restrictions on foreign schools should add to the attraction, zone authorities say.

Aside from the newly arising FEZ, investors are showing increased interest in the already existing industrial belt which has successfully thrived in the port city.

Some globally-renowned shipbuilding industries reside here, as do major automobile manufacturers. The area is also home to world-class aerospace and machinery companies and logistics and port-related businesses as well.