Creation of the Nation's First 'Digital Free Trade Zone' in Masan Marine New City, Gyeongnam

Changwon Special City Advances Final Procedures for Designation as 'Digital Free Trade Zone' by Ministry of Trade, Industry and Energy

Mayor Hong Nampyo Expects It to Become a Foundation for Reviving Masan's Former Glory in the 4th Industrial Revol

For the first time nationwide, a digital free trade zone will be established in Masanhangyo New City, Changwon Special City, Gyeongnam.

A bird's-eye view of the digital free trade zone to be established in Masan Marine City.

The ‘Digital Masan Free Trade Zone,’ designated on a 33,089㎡ public site within Masanhangyo New City, is an urban high-tech industrial complex where D.N.A (Data, Network, AI) companies are concentrated, moving away from the traditional manufacturing-oriented industrial complex model to one suited for the 4th Industrial Revolution era.

Changwon Special City requested the government to designate the ‘Digital Masan Free Trade Zone’ last December by going through the procedures of ‘designation of urban development project zone (development plan), change of implementation plan, and announcement of topographic map’ for the Masanhangyo New City (Seohang District) urban development project to meet the requirements for designating an urban high-tech industrial complex.

As a result, on the 5th of this month, the Ministry of Trade, Industry and Energy completed its final review, and the official announcement process for the designation of the Digital Masan Free Trade Zone by the ministry is currently underway.

The city plans to develop the Digital Masan Free Trade Zone into an intelligent machinery and manufacturing special zone producing and exporting tangible and intangible goods by linking it with the existing Masan Free Trade Zone and Changwon National Industrial Complex. It also aims to establish a new industrial ecosystem where residential, cultural, industrial, and natural elements coexist.

To this end, the city plans to attract knowledge-based industries, information and communication industries, and advanced manufacturing industries, and also establish a DNA Innovation Town as a research cooperation space for future high value-added fields such as future mobility, electronic components, and advanced logistics.

The project period is four years from 2024 to 2027, with a total budget of 386 billion KRW, including 290 billion KRW from the national government and 96 billion KRW from local government funds. The city expects that upon completion, the Digital Masan Free Trade Zone will generate an output of approximately 541.2 billion KRW, a value-added effect of about 226.4 billion KRW, and create 3,441 jobs. Going forward, the city plans to concentrate all administrative efforts in cooperation with Gyeongnam Province to pass the preliminary feasibility study.

Mayor Hong Nampyo stated, “The nation’s first ‘Digital Masan Free Trade Zone’ will serve as one of the pillars of innovative growth driving Changwon’s future for the next 50 years, centered on Masanhangyo New City,” and added, “We will do our best to attract many domestic IT companies, startups, foreign companies, and young talents.”