What Are the Key Points for Investment Attraction in Incheon Free Economic Zone?... Bio, ICT, Logistics

Incheon Free Economic Zone Authority located in G Tower, Songdo International City
[Photo by Incheon Free Economic Zone Authority]

[Asia Economy Reporter Park Hyesook] A study has found that the key industries for future investment attraction in the Incheon Free Economic Zone are bio, information and communication technology (ICT), and logistics.

On the 7th, the Incheon Free Economic Zone Authority held the "Final Report Meeting on the Establishment of Investment Attraction Strategy for the Incheon Free Economic Zone."

The Korea Institute for International Economic Policy, a government-funded research institute that conducted this project, presented a vision of a world-class bio-police centered on bio, ICT, and logistics as the core sectors for the investment attraction direction of the Incheon Free Economic Zone at the report meeting.

To achieve this, four major promotion strategies were established: attracting investment focused on professional manpower, capital, and technology; improving the investment attraction environment by utilizing regulatory relaxation test beds; securing networking capabilities linked with domestic and international universities, research institutes, companies, and similar clusters; and providing the best administrative services through administrative reform.

Additionally, as part of the investment attraction activation strategy, the Incheon Free Economic Zone Authority proposed revitalizing venture investment finance by mandatorily investing a portion of the fund amount, creating startup spaces and utilizing professional accelerators to activate the innovation ecosystem, abolishing discrimination against domestic companies and attracting excellent domestic mid-sized companies, and expanding tax reduction criteria and incentives to both domestic and foreign companies.

Along with this, regarding non-face-to-face marketing strategies after the COVID-19 pandemic, efforts such as uploading investment promotion IR (Investor Relations) videos on the homepage and YouTube, activating online video negotiations, establishing an on-site inspection system using drones, and connecting overseas investors with domestic companies seeking investment one-on-one through the online marketplace project operated by KOTRA (Korea Trade-Investment Promotion Agency) were also proposed.

This study predicted that global foreign direct investment (FDI) would decrease by more than 40% this year compared to last year due to the impact of COVID-19, and would further decline by 5 to 10% next year. However, it is expected to gradually recover from 2022 onwards.

Despite this outlook, the Incheon Free Economic Zone was analyzed to have high competitiveness in logistics, bio, and ICT sectors based on world-class infrastructure such as airports and ports and the best location conditions in Northeast Asia.

Based on the results of the project, the Incheon Free Economic Zone Authority plans to establish a new investment attraction strategy up to 2030.

Lee Won-jae, head of the Incheon Free Economic Zone Authority, said, "Based on the project results and expert advice, we will prepare differentiated attraction strategies for future core companies and do our best to help the Incheon Free Economic Zone take a step forward through multifaceted investment attraction activities."