BJFEZ, Gateway to the Arctic Route, Must Be Fostered as a Core Region for New National Growth

Park Sung-ho, Commissioner of BJFEZ: “BJFEZ is the ‘key axis’ in resolving the Seoul-centric system.”

Must be nurtured into a global business and logistics hub through deregulation and investment attraction.

 

With climate change accelerating Arctic ice melting, the Arctic shipping route is opening. In addition, the Lee Jae-myung administration plans to relocate the Ministry of Oceans and Fisheries, related organizations, and companies to Busan, the “Maritime Capital,” as part of overcoming the Seoul-centric system and promoting balanced national development.

 

Park Sung-ho, Commissioner of the Busan-Jinhae Free Economic Zone (BJFEZ), stated: “BJFEZ, which is becoming the gateway to the Arctic route and the key axis of balanced national development, will seize this enormous change as an opportunity to build a new platform for the global supply chain, becoming a hub for balanced national development and a new growth engine.”

 

He further emphasized BJFEZ’s locational and industrial strengths amid urgent global demands to tackle the climate crisis and restore supply chains.
“Spanning Busan and Jinhae, BJFEZ already possesses world-class logistics infrastructure, ports, and advanced industrial complexes. With the addition of the Arctic route, BJFEZ will transform from a simple economic zone into a strategic core for the nation,” he explained.

 

Turning Points for Maritime Economy

Commissioner Park also noted the relocation of the Ministry of Oceans and Fisheries to Busan as a crucial turning point: “With the ministry moving, related organizations and businesses will naturally gather in BJFEZ. This will not only form a marine economy cluster but also strengthen the practicality and execution of policies,” he emphasized.

However, he warned that simply opening the Arctic route and relocating the ministry would not automatically make BJFEZ a world-class business and logistics hub. Competing with Shanghai (global logistics hub with the world’s largest container throughput), Singapore (the world’s top transshipment port and financial center), and Shenzhen (an advanced industrial hub) requires much more, including expanding logistics functions through the opening of Gadeok International Airport and Jinhae New Port.

 

Five Key Tasks for BJFEZ

1. Expansion of the Free Economic Zone (FEZ) to foster port hinterland and manufacturing clusters
· Current developments: Busan’s Tri-port complex logistics district (2.79㎢) and Jinhae New Port hinterland (6.98㎢) have been selected as greenbelt relaxation areas.
· Challenge: To solve land shortages, additional zones including Gadeok and nearby Geoje, Jinhae, and Gimhae must be urgently developed into integrated airport, logistics, and manufacturing clusters.

2. Regulatory innovation for global business/logistics hub creation and investment attraction
· Past success: BJFEZ secured large-scale investments by easing height restrictions and rental space limits in port hinterlands and revising taxation in free trade zones.
· Remaining needs: Expansion of rent reduction periods, tax incentives, exemptions for foreign investors, and streamlined administrative procedures to match global standards.

3. Support for growth of tenant companies and building an innovation growth cluster
· BJFEZ focuses on four strategic industries: complex logistics, smart mobility, advanced materials & components, and bio-health.
· With 481 related companies (2023), the largest number nationwide, BJFEZ needs government-level support to attract anchor firms, foster an innovation ecosystem, and implement regulatory reforms.

4. Improving living conditions to become a true global business hub
· The Myeongji District is being developed into an international new city with R&D facilities, premium residential areas, international schools (Royal Russell School, Wellington College, etc.), hospitals, cultural complexes, and art centers.
· Additional residential, cultural, tourism, education, and leisure facilities will be created in Gyeongnam’s Ungdong, Dudong, and Ungcheon–Namsan districts.

5. Building operational strategies and support facilities to compete with world-class zones
· A “Global Standard FEZ Model” is needed, with one-stop administration, sandbox-style deregulation, and flexible systems.
· Plans include establishing a “Future Convergence Support Center” integrating administration, MICE, accommodation, education, and business functions, and developing a “Global Marine Digital Demonstration City” for autonomous navigation, marine robotics, and smart ports.

 

Looking Ahead: BJFEZ 2.0

Commissioner Park shared that BJFEZ has recently attracted growing interest and visits from European and Southeast Asian companies: “BJFEZ stands at the center of global strategic opportunities. But whether we seize them depends entirely on thorough preparation and execution, including zone expansion and regulatory reform.”

He continued:“As we enter the era of ‘BJFEZ 2.0,’ destined to become the center of the global maritime economy, we must shift from the stage of ‘designing strategies’ to ‘executing them.’ We urgently need infrastructure upgrades and system redesigns to accommodate the influx of global companies and people.”

Finally, he emphasized: “BJFEZ is the core of the southeastern economic belt linking Busan, Gyeongnam, and Ulsan. It can break the Seoul-centric structure and ignite balanced national development. What is needed now is bold decision-making and institutional reform. With cooperation from the central government, BJFEZ can open a new chapter for national progress.”

 

This press release has been translated with the help of ChatGPT.