A foreign investment zone (FIZ) is divided into an individual-type FIZ and a complex-type FIZ. An individual-type FIZ was adopted to attract large-scale investors in the post Asian financial crisis period. A complex-type FIZ was established to attract small- and medium-sized foreign investors in the advanced industries. Since both types of FIZ aim to promote foreign investment, they were unified in 2004.
A free trade zone (FTZ) is a special zone first adopted in 1970 along with the industrialization of Korea. A FTZ is a tariff-free zone to promote trade. There is no customs procedure for import of raw materials and export of products. Initially, FTZ was operated as a free export zone of the manufacturing industry. Then, a tariff-free zone for logistics was established. In 2004, they were unified. A FTZ and FIZ are similar in that the tenant companies will benefit from tax reduction and factory site rent. A FTZ, however, is a non-tariff zone to promote trade.
A free economic zone (FEZ) has been adopted to swiftly build a foreigner-friendly business and living environment at a certain region. A FEZ is different to a FIZ for a FEZ is larger than a lower-level local government, its relevant authority holds the administrative jurisdiction and it creates a foreigner-centered environment including building foreign schools and hospitals.