Despite Domestic and Foreign Investment Contraction Last Year, Raised 7.4 Trillion KRW, Up 347%
More Aggressive Investment Attraction This Year, Expanding Songdo Bio Cluster
Key Projects in Cheongna and Yeongjong, Including City Tower and Media Culture Complex, Facing Difficulties
Attention on Legislative Notice for Ordinance to Establish 'English-Friendly City'
Jinyong Kim, Head of Incheon Free Economic Zone Authority Photo by Incheon Free Economic Zone Authority
[Asia Economy Reporter Park Hyesook] "We will actively and aggressively induce new investments."
'A dazzling city where the future comes.' This is the slogan of the Incheon Free Economic Zone (IFEZ), which marks its 20th anniversary as an economic free zone this year.
On the 3rd, at his office in Songdo, Incheon, Kim Jinyong (photo), head of the Incheon Free Economic Zone Authority, explained the background of the IFEZ slogan, saying, "The slogan of a seminar held in Rome, Italy, was 'The future passed through here.' It fully expressed pride in the advanced Roman architectural technology, aesthetic beauty, and grand scale."
He said, "The future that passed through Rome, I believe we must prepare and get ready so that the future can come to IFEZ," and predicted, "The city of the future will be a sustainable city where safety, convenience, and efficiency are guaranteed, and work, residence, and play are harmoniously balanced."
Kim said, "Due to domestic and international economic crises and the resulting poor investment environment, as well as the decrease in IFEZ land, many difficulties are expected in attracting investment," diagnosing that "a new breakthrough and momentum are needed." His plan is to "carry out more active and aggressive investment attraction activities to discover new investors and induce existing companies to make new or increased investments."
Kim emphasized, "We will make IFEZ comparable to Singapore, Hong Kong, and Dubai," and "IFEZ will play a leading role so that Incheon can leap into a world-class city." The 'world-class city' that Incheon aims for is a human-centered happy city that improves quality of life through culture, history, and environment, based on a super-smart city leading the world in response to the 5th Industrial Revolution era. This is also the administrative direction of Incheon City under the 8th elected government.
The Incheon Free Economic Zone Authority focuses on expanding the Songdo bio cluster and supporting investment, demonstration, and global expansion of startups related to the 4th Industrial Revolution in creating an industrial ecosystem for the leap to a world-class city.
Songdo International City houses about 90 industry-academia-research institutions, including Korea's top three bio companies: Celltrion, Samsung Biologics, and SK Bioscience. Especially, due to large-scale facility investments by major companies, it has the world's largest biopharmaceutical production capacity for a single city (880,000 liters), and in the past five years, it accounted for 46.3% of Korea's pharmaceutical exports, proving it as a global hub for Korea's biopharmaceutical industry.
Kim said, "This year, we will smoothly proceed with the completion of Samsung Biologics Plant 4, Celltrion Plant 3, SK Bioscience Research Center, and Sartorius research and manufacturing facilities to visibly show Songdo leading the bio industry," and "We will also continuously attract investment in R&D and manufacturing facilities of global anchor companies in the biopharmaceutical field from the U.S., Germany, and other countries to firmly establish Songdo's global status."
Regarding the Incheon Startup Park, recognized as Korea's first public-private partnership startup nurturing model, he said, "Through various support programs, we plan to attract excellent startups not only from Incheon but also from other regions to Incheon," and "We will also create a dedicated fund to activate investment attraction support so that it can establish itself as a startup innovation platform."
IFEZ's investment attraction amount last year was 7.0462 trillion won. Despite difficult domestic and international investment conditions, this amount increased by 347% compared to the previous year (1.5756 trillion won). In the past two years, seven domestic companies have been attracted.
However, most of these achievements were concentrated in Songdo, and the core projects of the Cheongna and Yeongjong Free Economic Zones are facing difficulties, which is a concern. The Cheongna City Tower, the tallest observation tower in Korea at 448 meters, is undergoing a termination process of the business agreement by the Korea Land and Housing Corporation (LH) due to conflicts over additional project cost sharing between LH and private developers. The Cheongna Video and Culture Complex District is under investigation by the Incheon City Council due to controversy over inadequate screening during the selection of the preferred negotiator.
Kim said, "In the case of Cheongna City Tower, LH proposed that if they build the tower, the Incheon Free Economic Zone Authority would manage and operate it, and this is currently under review," and "The Cheongna Video and Culture Complex District project will select the preferred negotiator after resolving the concerns."
Regarding the Yeongjong Eulwangsan i-Park Hill project, which is struggling with economic free zone designation, he said, "Since it is key to creating a K-content industry ecosystem, economic free zone designation is essential for project promotion," and that they are actively persuading related organizations such as Incheon International Airport Corporation and the Ministry of Land, Infrastructure and Transport.
Kim is drawing attention by declaring that he will make IFEZ an 'English-speaking city.' The related ordinance has been announced for legislation and public opinions are being collected. His view is that the older generation has an obligation to either create a country where the growing youth do not have to use English or to establish a foundation where English can be easily learned. Moreover, in IFEZ, which proclaims itself as an 'international city,' an environment where foreigners can communicate without inconvenience is essential.
Kim said, "To create a city where people communicate in English in daily life, we plan to build a close cooperation system with related organizations such as international organizations, international schools, and universities in the Incheon Global Campus," and "We will actively promote bilingual signage in Korean and English in public institutions' administrative services and guide signs, and English announcements in apartments where foreigners reside."
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