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BJFEZ News

BJFEZ'S Administrative Support Leads To $212M Investment Attaction

CreateDate
2022-07-29
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BJFEZ

BJFEZ attracts Investment worth $212M USD

BJFEZ attracts Investment worth $212M USD

 

BJFEZ'S ADMINISTRATIVE SUPPORT LEADS TO INCREASED INVESTMENT ATTRACTION

3 Global Logistics Companies Invest $212 million USD in BJFEZ


BJFEZ Authority attracted increased investment worth approximately $212million US Dollars as a result of the follow-up support for the companies post-MOU. The figure increased by 165% compared to the initial amount($80M) of investment signed in May 2020.

This remarkable achievement was due to the effort that BJFEZ Authority has put into the newly signed companies even after the Investment MOU signing. 

BJFEZ Authority has consistently provided the three global logistics companies the customized administrative service for them to securely settle down in the Zone. Despite the high possibility of reducing the original investment due to the prolonged pandemic era, BJFEZ Authority and each of the three new tenant companies strengthened their partnership through constant follow-up communication and consultation. As a consequence, all of them decided to increase their investment significantly.

 


 ◆ Dongwon Loex  Cold Storage II

Dongwon LOEX Cold Storage started its business at BJFEZ in 2018. With active business activities, Dongwon LOEX Cold Storage reached its capacity. The company decided to add another cold-chain storage for Home Meal Replacements, which can be generally categorized into four different types, such as RTP(Ready to Prepared), RTE(Ready to Eat), RTC(Ready to Cook), and RTH(Ready to Heat) and for Healthy Food with a plan of investing $47M USD and creating 100 jobs.

However, due to the Building-Height Restriction at the port-hinterland(Busan New Port), the company struggled to find an efficient way to construct the cold chain storage. So, the BJFEZ Authority stepped in to help. The BJFEZ Authority began to be on consistent consultation and discussion with the local government to relax the regulation and succeeded in mitigating the restriction from 40 meter to 60 meter, solving the difficulties for the company. As a consequence, Dongwon Loex Cold Storage II tripled its total amount of investment compared to the initial amount in 2020.


DWL Global

DWL Global planned to construct a large-scale logistics center in Busan New Port to set a firm base for Northern Logistics focused on the Russian Far East. Their initial plan was to invest $19M USD and hire 160 employees. However, the BJFEZ Authority presented the near-future logistics infrastructure of BJFEZ, the Jinhae New Port, and Gadeok International Airport, as well as the fact that BJFEZ would be the origin/final destination of the transcontinental railway that will connect Eurasia and persuaded that BJFEZ is the optimal place for them to advance to the North. Accordingly, DWL Global determined to add $27M USD to their initial investment, which sums up to $52M USD in total, and hire 200 employees. 


  Access World Busan

Access World Busan is the No.1 anchor company in raw materials logistics, which planned to build a logistics center for raw materials in Busan New Port by investing $14M USD and hiring 84 employees. The BJFEZ Authority offered the company rent reduction and tax exemption as Access World Busan is expected to contribute to the increase in the import/export volume and lead the advancement of the domestic logistics industry by creating added value, which is often called Value-Added Logistics(VAL). With the added incentives, Access World Busan increased its investment to $19M USD.


 

All three new logistics centers in BJFEZ had successfully commenced. The first one to be ready is that of Access World Busan, opening within the end of the year, and BJFEZ will welcome the two other centers in 2023.

 

BJFEZ Authority would like to appreciate all new tenant companies for the decision to invest more in BJFEZ. BJFEZ is very well aware that signing the investment MOU is not the end but another beginning. We will provide the needed administrative support for the companies to settle down and start their business activities in BJFEZ smoothly. Moreover, we will continue to put our effort into easing related regulations so that our tenant companies can grow and expand further within the Busan-Jinhae Free Economic Zone.

Kim, Ki-Young, Commissioner of BJFEZ