Lee Won-jae, Head of Incheon Free Economic Zone Authority, and Seok Su-jin, CEO of Thermo Fisher Scientific Korea (center), are taking a commemorative photo with officials after signing the "Agreement for Fostering the Songdo Biopharmaceutical Research and Process Field." September 22, 2020. Photo by Incheon Free Economic Zone Authority.
[Asia Economy Reporter Park Hyesook] As the novel coronavirus disease (COVID-19) crisis continues, foreign investment attraction in the Incheon Free Economic Zone (IFEZ) has not been able to avoid sluggishness.
According to the Incheon Free Economic Zone Authority on the 9th, as of the end of September this year, the reported amount of foreign direct investment (FDI) in the IFEZ was 344 million USD, reaching only 52% of the annual target amount (656 million USD).
The main reason is analyzed to be the difficulty in promoting the IFEZ and attracting investment through IR (Investor Relations) events abroad due to COVID-19.
Considering this situation, the Incheon Free Economic Zone Authority is making every effort by conducting various investment attraction activities such as online video investment briefings.
This year, in addition to the construction of a low-temperature complex logistics center in the new port hinterland of Songdo International City by EMP Belstar, a fund management company headquartered in New York, USA, and the expansion of the Incheon hub cargo terminal by the global logistics company DHL, investment reports have been received from 25 foreign-invested companies including Iris Korea from Japan and Skylogis from Singapore.
Also, over the past year, three contracts have been secured including the construction of the headquarters and research institute of Daebong LS Co., Ltd., the construction of the comprehensive technology center of Aekyung Group, and the establishment of an eco-friendly advanced plastic manufacturing facility by BGF Eco Bio.
Furthermore, memorandums of understanding (MOUs) have been signed in various fields such as the construction of Costco Cheongna branch, EMP low-temperature complex logistics center, establishment of Calvin Manitoba International School, creation of Cheongna Streaming City, and construction of the Korea Basic Science Institute (KBSI) metropolitan integrated center.
The Incheon Free Economic Zone Authority is also accelerating major projects including the 'Incheon Startup Park,' which will be a cradle for nurturing startups pursuing a Korean version of Silicon Valley, the 'Art Center Incheon Phase 2 Project' to lead Incheon as a cultural and artistic city, and the 'Waterfront' project to develop Songdo as the Venice of the East.
Currently, major projects such as the development of the Cheongna International Business District, which is in the process of soliciting business operators, the construction of the 'Cheongna City Tower,' which has passed landscape review and is gaining momentum, and the '3rd Interconnection Bridge,' scheduled to begin construction by the end of this year, are being actively promoted.
In particular, regarding the bio industry, as the world's largest biopharmaceutical production base is established in Songdo International City, global companies in the life sciences field such as Thermo Fisher Scientific are moving in, and recently, new investments by large corporations such as Samsung Biologics and Celltrion are also underway.
An official from the Incheon Free Economic Zone Authority stated, "We are continuously networking with potential investors using video calls and emails and inducing new investments and additional investments through companies that have already invested in the IFEZ. Although attracting foreign investment is difficult due to COVID-19, we expect to achieve 80% of the target by the end of this year."
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