The Incheon Free Economic Zone (IFEZ) used to be an island, sea, tidal flat, and reclaimed land, but now it has been transformed into an ultra-modern city with sky-high skyscrapers and a population of 410,000. After being designated as Korea’s first free economic zone in 2003, a great change has been made over the past 20 years. BusinessKorea has arranged an interview with Kim Jin-yong, commissioner of the Incheon Free Economic Zone Authority, to learn about his organization’s achievements in 2022 and plans for this year.
Question: What are your policy directions for this year?
Answer: This year is the Year of the Black Rabbit according to the Oriental Zodiac System. Although the global economy is expected to go through a tough time again in 2023, we will be able to overcome it if we use our wisdom like rabbits. I will do my best to ensure that the IFEZ plays a leading role in helping Incheon take off as a world-class city. In particular, we plan to redouble our efforts to attract new investors.
Q: Would you tell us about some of your most notable achievements?
A: Despite unfavorable conditions in 2022, the IFEZ achieved many impressive achievements, highlighted by the winning of the highest grade in evaluation of free economic zones in Korea for four consecutive years. Our main achievements include the conclusion of a land sale contract with Samsung Biologics and Sartorius, progerss in promoting the Cheongna Medical Complex Project, starting the construction of Songdo Severance Hospital, and push for the third bridge connecting Songdo and the mainland and the Songdo Waterfront Project.
In October 2020, the government announced that it would shift the focus of the free economic zones from development and foreign investment attraction to innovation-powered growth. In line with this policy shift, the IFEZ has been making various efforts to attract Korean and foreign companies to create an innovative ecosystem centered on core strategic industries such as biotech and healthcare, smart manufacturing, aviation and complex logistics and knowledge-based and tourism service industries.
In 2021, the regulations for the nation’s free economic zones (FEZs) have changed to allow Korean companies to move into areas reserved for foreign-invested companies. The IFEZ attracted seven Korean companies over the last two years by targeting reshoring Korean companies and attracting investment through a public contest system.
In particular, last year, the IFEZ received a total of 7,462 billion won in investment, including contracts with Macrogen for the establishment of genome analysis research facilities and Samsung Biologics for the establishment of biopharmaceutical research and manufacturing facilities.
Q: How will the projects of Songdo Severance Hospital and Cheongra Asan Hospital progress in the future?
A: Songdo Severance Hospital, a large hospital with 800 beds, held a groundbreaking ceremony at the end of 2022 for completion in 2026. In 2006, Incheon Metropolitan City signed an agreement with Yonsei University to build the Yonsei University International Complex in Songdo. This year, the city’s efforts to create an ecosystem among the companies, schools, research institutes and hospitals in the Songdo Bio Cluster are expected to gain momentum.
The Cheongna Medical Complex Town will have a world-class hospital with 800 beds planned in the first phase and 300 to 500 additional beds in the second phase. Its Life Science Part will accommodate medical and bio research facilities of the Asan Medical Center, KAIST and the Harvard Medical School Research Center. It will also have a cutting-edge smart education center to promote the excellence of Korea’s medical and bio industries to the world. The Cheongna Medical Complex Town plan was approved by the Mininstry of Trade, Industry and Energy last year and will be promoted in earnest from this year.
Q: What are the current status of and future plans for other projects related to the Yeongjong Free Economic Zone?
A: With regard to the RFKR Resort project in Midan City, we are selecting other investors and casino facility operators under the supervision of the project’s business operator. In order to resume the construction of the resort as soon as possible, the IFEZ will actively provide administrative support. In addition, the Korean Ministry of Culture, Sports and Tourism will actively support the extension of periods for licenses for preliminary examinations in the future.
As many international schools are hoping to open in Midan City, the IFEZ plans to select a preferred bidder through a public contest. We will discuss details such as land provision and evaluations with Incheon Housing & City Development Corp, the site owner. We will also discuss the matter with the Ministry of Trade, Industry and Energy and the Office of Education.
Q: The IFEZ is promoting the creation of an English-speaking city. Would you tell us more about the current situation?
A: Until now, we have heard that the biggest problem facing foreigners in FEZs in Korea is communication difficulties and language barriers. As the proportion of foreigners in free economic zones is increasing, the realization of an English-speaking city is an essential policy. In a survey of foreigners, about 34 percent expressed their intention to live in the IFEZ for the next three years or more. The survey result suggests that the English speaking city project is needed to improve the living conditions of such foreigners.
The IFEZ announced the Ordinance on the Organization and Operation of the IFEZ English-Speaking City Promotion Committee and is currently collecting opinions from citizens regarding the enactment of the ordinance. Designating Songdo International City as an English-speaking city and operating it as such on a pilot basis was also a pledge by Incheon Mayor Yoo Jeong-bok. In order to organize a promotion committee in this regard, we are planning to find various experts and check various measures such as promotion directions, the scope of application and implementation methods for the creation of the English-speaking city.
Q: Would you walk us through Incheon Startup Park’s achievements in 2022 and its plans for this year?
A: Incheon Startup Park is a startup innovation cluster where innovative entities, including startups, investors, large corporations, colleges and universities and supporting organizations, communicate and support the growth of startups. It is Korea’s public-private partnership startup fostering model, run together with Shinhan Financial Group and Celltrion.
Incheon Startup Park attracts investment based on empirical resources and runs a fostering program to support global advancement. It supported 422 startups in 2022 and is expected to attract about 173.4 billion won in investment, 122.4 billion won in sales, and create about 782 new decent jobs as a result.
Incheon Startup Park has more than 30 partners which support startups and has established a platform for the growth of startups based on verification with the participation of large corporations such as Shinhan Financial Group, Samsung Biologics, and Celltrion and colleges and universities.
Q: You recently went on a business trip to the United States to induce investment from investors. What are the achievements?
A: Recently, I went on a business trip to Las Vegas and Los Angeles, in the United States during the Consumer Electronics Show (CES) 2023, the world’s largest trade show in the information and communication technology (ICT), contents and entertainment fields.
This business trip was made to create a K-content world in Incheon and to discover companies to attract their investment in the IFEZ.
First, I signed a letter of cooperation (LOC) with Imagine That Design & Production (ITDP), a media art event company with rich experience in various projects in Las Vegas. In Los Angeles, I signed an LOC with Water Technology Entertainment (WET) with the world’s best technology related to fountain shows.
In addition, I requested investments in the IFEZ from two global complex resort operators, two global media outlets and global intellectual property rights holders.
