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Amid shrinking investor confidence, foreign direct investment (FDI) has been on the rise in Incheon. According to the Bank of Korea, FDI reported in Incheon last year reached USD 3.18 billion, second only to Seoul’s USD 5.81 billion.
“There are two main reasons for the increase in FDI in the region: the Incheon Free Economic Zone, which is located in the middle of the Northeast Asian Economy, which accounts for 20 percent of the world economy; and Incheon’s ideal position for securing cargo through the Incheon International Airport and the Incheon Harbor,” said an official from the Bank of Korea.
FDI from Asia accounted for 44.1 percent of the total amount of FDI in Incheon reported between 2001 and 2012, followed by the Americas (38.9 percent) and Europe (14.5 percent). Over the same period of time, 46.3 percent and 53.7 percent of FDI flowed into the manufacturing and service industries in Incheon, respectively.
Officials from the Bank of Korea anticipated that FDI in the Incheon Free Economic Zone will consistently grow. They suggested that Incheon come up with various measures to promote FDI, such as attracting the regional offices of multinational conglomerates, establishing an effective investment support system, providing incentives, and easing regulations.
Source: Yonhap News (Mar. 26, 2013)
** This article was translated from the Korean.