Busanjin-Hae Economic Free Zone Authority and Geoje City Sign Agreement to Establish Cooperation for Zone Expansion
Proactive Response to Large-Scale Development Demand
Feasibility Review Focused on Practical Viability
The Busanjin-Hae Economic Free Zone Authority has begun preliminary procedures to designate the Geoje Airport Hinterland City as an economic free zone. This initiative aims to proactively secure a new growth hub in the southeastern region, centered around the construction of the new Gadeokdo Airport.
On January 14, the Busanjin-Hae Economic Free Zone Authority (Director Park Seongho) announced that it had signed a memorandum of understanding (MOU) with Geoje City at the Geoje City Hall to conduct a feasibility study for designating the Geoje Airport Hinterland City as an economic free zone. The signing ceremony was attended by Director Park Seongho, Mayor Byun Gwangyong of Geoje, and officials from both organizations.
Under this agreement, the two organizations will establish a joint cooperation system to expand the economic free zone in the Geoje area and will comprehensively review the necessity and strategic approach for designating the airport hinterland city as an economic free zone. The total cost of the study is 80 million won, which will be equally shared by the Busanjin-Hae Economic Free Zone Authority and Geoje City, and the study will be conducted over a ten-month period starting in February 2026.
The Busanjin-Hae Economic Free Zone currently has a development rate exceeding 98%, leaving limited capacity for further development. Additionally, as the activation of the Busan New Port and the construction of the Jinhae New Port accelerate, the shortage of hinterland sites for ports is becoming more apparent. According to the Ministry of Oceans and Fisheries' 4th Comprehensive Plan for Port Hinterland Development, by 2030, there will be a shortage of approximately 5.78 million square meters of port hinterland space.
With the implementation of major national projects such as the Gadeokdo New Airport and the Southern Inland Railway, the demand for logistics, industrial, and business facility sites is expected to continue rising. In response, Gyeongsangnam-do Province has emphasized the need to strengthen the foundation for attracting investment by expanding the economic free zone. Governor Park Wansu of Gyeongsangnam-do has proposed the vision of an "Economic Free Autonomous Province" and requested the establishment of related plans.
In line with these policy directions, the Busanjin-Hae Economic Free Zone Authority has made the expansion of the zone a key initiative and has begun identifying candidate sites, while Geoje City has continuously requested the designation of an economic free zone to lay the groundwork for regional growth through the development of the airport hinterland city.
In March of last year, part of the planned airport hinterland city development site was released from the military facility protection zone. Subsequently, in July, the heads of the Economic Free Zone Authority and Geoje City met and agreed to jointly conduct the feasibility study, accelerating the project. The inclusion of the project in the Gyeongsangnam-do provincial budget further established the institutional foundation for the study.
This study differs from the previous "Gadeokdo New Airport Hinterland City Development Plan Study." While the previous study focused on creating a comprehensive development blueprint, the current study aims to verify the policy feasibility, corporate demand, and economic viability for the designation as an economic free zone. This reflects the Ministry of Trade, Industry and Energy's recent criteria for reviewing new economic free zone designations.
As the lead agency, the Busanjin-Hae Economic Free Zone Authority will commission the study and begin a full-scale review of the possibility of designating the Geoje Airport Hinterland City as an economic free zone.
Park Seongho, Director of the Busanjin-Hae Economic Free Zone Authority, stated, "This marks the starting point for preparing a future growth hub in the southeastern region, linked with key national infrastructure such as the Gadeokdo New Airport and the Southern Inland Railway. We will develop an economic free zone model with both feasibility and viability, leading to tangible results in expanding the zone."
At the agreement ceremony between Busanjin-Hae Economic Free Zone Authority and Geoje City held on the 14th, Park Seongho, Director of Busanjin-Hae Economic Free Zone Authority (fifth from the left), and Byeon Gwangyong, Mayor of Geoje City (fourth from the left), are taking a commemorative photo with the attendees.
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