◈ FDI declarations for 2023 totaled $383 million, exceeding the target.

◈ Cumulative total FDI declared since opening (2004-2023): US$4.442 billion (KRW 5.93 trillion).

The Busan-Jinhae Free Economic Zone Authority (Commissioner Kim Ki-young, hereafter referred to as ‘the BJFEZ Authority’) announced on 26, January that it exceeded its target for foreign direct investment (FDI) filings last year, reaching $383 million.

By industry, the high-tech sector accounted for 11 cases totaling $196 million (51%), while the logistics sector accounted for 6 cases totaling $168 million (44%). By country, the Cayman Islands and the United States each accounted for 26% of the investments, followed by the Netherlands (20%), Japan (11%), and the UAE (11%).

Major investments included the establishment of additional data centers by Microsoft, a key infrastructure component for the Fourth Industrial Revolution, and increased investment by Renault Korea. Additionally, investments were made in the logistics sector, including Naigai Busan Logistics Center, and DP World Busan Logistics Center.

These large-scale investments are attributed to the competitiveness of the Busan-Jinhae Free Economic Zone as a global investment location, boasting efficient logistics infrastructure connecting air and land, centered on the new port of Busan, the world's second-largest transshipment port.

Moreover, the industrial structure of the Southeast region of Korea is rapidly shifting from machinery and manufacturing to service and high-value-added logistics, aligning with global market trends. The zone has swiftly encouraged bold regulatory reforms and fostered new industries to attract corporate investment.

Last year, the BJFEZ Authority led to increased investment in logistics centers (KRW 50 billion → KRW 164 billion) by advocating for the easing regulations on building height restrictions (40m → 60m). This change enabled industry convergence by integrating logistics-attracting industries with existing manufacturing industries, addressing the shortage of logistics land in the Wasung District and creating future-oriented high-value-added. Consequently, an investment agreement worth KRW 2 trillion was signed to develop the BJFEZ Wasung District and attract high-value-added logistics industries. When the global high-value-added logistics center is completed, it is expected to significantly contribute to the local economy as a top logistics platform base.

"I believe that the efforts of all employees, including active investment attraction activities and regulatory innovation to improve the investment environment, have been reflected in the investment results even amid last year's global economic crisis," said Kim Ki-young, Commissioner of the BJFEZ Authority. "This year marks the 20th anniversary of the zone's opening, and we will mobilize all administrative power to actively attract investment, including fostering high-tech and new industries and discovering potential investment companies based on our unrivaled infrastructure."