Goyang City Focuses on "Free Economic Zone" Application This Year... Meets 51% Foreign Investment Demand Criterion

Some City Council Members Claim "Zero Performance,"
Goyang City Expresses "Regret Over Baseless Allegations"
"Efforts Toward Final Designation Undermined... Now Is the Time for Cooperation"

Goyang Special City in Gyeonggi Province (Mayor Lee Donghwan) announced on November 22 that it is focusing all its administrative resources on submitting an application for designation as a "Free Economic Zone" within this year, with the goal of becoming a fully self-sufficient city.

Aerial view of Goyang Special City Hall. Provided by Goyang Special City.

Goyang Special City has already secured more than 51% of the foreign direct investment (FDI) demand, which is a key criterion for designation by the Ministry of Trade, Industry and Energy, thereby increasing the likelihood of being selected.

The city has received three rounds of preliminary consultations from the Free Economic Zone Committee of the Ministry of Trade, Industry and Energy. It plans to faithfully reflect the consultation results and finalize the development plan, including the area to be designated, within this month. Afterward, the city will proceed with a preliminary review and collect public opinions before officially submitting the development plan.

In particular, the city stated that it has secured foreign-invested company demand exceeding 51% of the planned area, which is a key gateway for Free Economic Zone designation. This figure satisfies the ministry’s requirement of "more than 50% foreign-invested company demand." For reference, in Ansan, which was finally designated in September, foreign investment demand stood at 53%.

The Ministry of Trade, Industry and Energy shifted the Free Economic Zone designation process in July 2022 from a batch application system every five to six years to a "rolling application and designation" system. This change also reversed the order from "designation first, then securing investment demand" to "securing investment demand first, then designation." This means that securing actual foreign-invested company demand is now the most important criterion for designation.

However, the city explained that there are not many companies willing to submit a letter of intent to invest in an area that has not yet been designated, and it is particularly difficult to persuade foreign companies or foreign-invested companies. Nevertheless, the mayor and relevant officials have made every effort to secure as many letters of intent as possible by thoroughly explaining Goyang’s strengths and potential.

Goyang Special City expressed deep regret regarding the criticism raised by Assemblywoman Jeong Minkyung in a recent city council inquiry, who pointed out that the "actual investment amount is zero."

The city emphasized, "The evaluation criteria of the Free Economic Zone Committee are based on the 'demand' from foreign-invested companies, not the 'results' of investment." It explained that actual investment cannot take place in areas not yet designated, and the documents required by the committee are "letters of intent (LOI)" expressing willingness to move in and invest.

An official from Goyang Special City stated, "A letter of intent (LOI) is not legally binding; it is simply a procedure to express a willingness to consider investment," and added, "Criticizing the first major pledge of the 8th popularly elected administration-'promotion of Free Economic Zone designation'-by pointing out the 'actual investment amount is zero' in an area that has not yet been designated could hinder progress."

Regarding the controversy over the actual number of investment attraction cases, the city explained that it was due to differences in the timing of data requests. While Assemblywoman Jeong claimed that all 204 cases were listed in the materials submitted by the city, in reality, the number of business agreements or letters of intent concluded as of her inquiry was 206. The materials submitted at a different request time (after the launch of the 8th administration) listed 204 cases.

Goyang Special City clarified that entities mentioned by Assemblywoman Jeong in her previous inquiry-such as the International Digital Promotion Committee, GOMSD (related to Beijing Automotive), and Nitey-were all excluded from the calculation of demand for occupancy. Only foreign-invested companies registered with the Ministry of Trade, Industry and Energy and reputable foreign companies with agreements either overseas or in Korea were included in the demand figures.

Meanwhile, amid this controversy, on November 18, GOMSD (related to Beijing Automotive) reportedly sent an official notice to terminate its agreement with Goyang, expressing regret over damage to its corporate image caused by media materials provided by the Goyang City Council.

Goyang Special City emphasized, "Designation as a Free Economic Zone is a core foundation for building a fully self-sufficient city, and citizens’ aspirations and earnest hopes for this are high." The city added, "We will work together with the city council and citizens to pursue the final designation and make Goyang’s future as a self-sufficient city a reality. At this moment, understanding and cooperation are more important than anything else."