Gangwon State Free Economic Zone (GSFEZ) was launched in 2013 with the grand ambition of developing the relatively underdeveloped eastern coast of Gangwon Province. Currently, the Zone is making increased efforts to revitalize the region, with various projects underway, like the Mangsang, Bukpyeong, and Okgye district projects which aim to attract more tenants. Read on to discover more on these projects and how Commissioner Shim Yeong-seob plans to make the Gangwon region a hub for future growth engines in the vibrant northeastern coast of South Korea.

Why was the institution’s name changed from East Coast Free Economic Zone to Gangwon Free Economic Zone?

The Gangwon State Free Economic Zone Authority, which was launched in 2013 as the "East Coast Free Eco - nomic Zone," changed its name on January 1, 2024. The name change was a strategic measure to align with the launch of Gangwon Special Self-Governing Province and to strengthen the institution's identity and expandability.

The previous name, "East Coast," encompassed other local governments outside of Gangwon Province, such as Ulsan and Gyeongbuk Province, making it difficult to represent "Gangwon Province." By changing the name to Gangwon Free Economic Zone, the authority has established a unique and differentiated brand image for Gangwon Province and laid the groundwork for expanding the Free Economic Zone industry throughout Gangwon in the future.

This name change is expected to clearly inform overseas investors that the Gangwon Free Economic Zone is a key investment destination in Gangwon Special Self-Governing Province, while also acting as a positive signal for regional economic growth and investment promotion.

What are the investment strengths of the Gangwon Free Economic Zone for potential investors?

GSFEZ is a special economic zone established to develop the eastern coastal region of Gangwon Special Self-Governing Province into a hub for the Pan-East Sea economic sphere by fostering global tourism and leisure industries, and by creating international logistics/business complexes, and an international city.

Recently, accessibility to the Seoul Metropolitan Area has significantly improved with railway and highway connections between Seoul and Gangneung, as well as Donghae and Busan and Gangneung. The ability to import and export through ports has also allowed Gangwon to emerge as Korea's top tourist destination and a hub for international trade in the Pan-East Sea region. Bukpyeong and Okgye districts are well-positioned for companies to secure favorable locations for northern logistics in preparation for the future Arctic Sea Route and inland railway era.

Mangsang District boasts Korea's most beautiful and pristine natural environment, along with abundant marine and tourism resources, making it an optimal location for a future-oriented international tourism complex city that offers a balanced mix of leisure, healthcare, education, and residential environments.

Above all, as a Free Economic Zone, legal grounds have been established for various tax benefits, the establishment of foreign educational institutions, and partial support for their setup and initial operating costs, in order to promote the growth of the Pan-East Sea region as an economic and tourism hub and to achieve balanced re - gional development. This provides the advantage of offering diverse support for foreign-invested companies and foreigners, including the creation of living conditions where people from all over the world can learn and grow together amidst the excellent natural environment of the East Coast.

What are the major foreign investment target projects for potential investors?

Regarding the creation of the Mangsang International Complex Tourism City, the "Mangsang District Tourism and Recreation Facility Investment Immigration System" was officially designated and announced on April 1st of this year. This system aims to promote foreign investment attraction, improve development project conditions, and address regional population decline and attract tourists.

The investment immigration system grants residency or permanent residency to foreigners who invest KRW 1 billion or more in designated facilities, such as accommodations and housing linked to sports facilities. Moving forward, the authority plans to actively promote this system both domestically and internationally through various media advertisements focused on the investment immigration system and by leveraging overseas investment attraction agencies. Through these efforts, the goal is to achieve an unprecedented level of foreign investment in Mangsang District.

For the Bukpyeong and Okgye districts, the authority is continuously identifying potential companies and conducting concrete discussions for practical investment results by linking with renowned exhibitions and expos, and by strengthening networks with relevant organizations and industries.

Specifically, in Bukpyeong District, the authority will actively attract partner companies for government R&D projects, such as water electrolysis hydrogen production, centered around Korea East-West Power. In Okgye District, the authority plans to diversify the types of industries that can be attracted and will actively consider adding new industries based on future corporate demand.

What legal and institutional policies does the Gangwon Free Economic Zone Authority provide to facilitate smooth project implementation for investors?

Attracting national institutions, such as research institutes, is becoming increasingly important for supporting corporate activities and fostering new industries within the Free Economic Zone. Currently, the construction of the Ministry of Oceans and Fisheries' Coastal and Port Disaster Prevention Research Center is being promoted in Okgye District to study the severe coastal erosion problems on the East Coast and to vitalize the coastal disaster prevention industry.

As the demand for actively reflecting special provisions for public property in relevant laws grows to ensure its smooth progress, the authority is currently pushing for the 3rd amendment to the 「Gangwon Special Act」, which includes special provisions allowing long-term lease of land owned by Gangwon Special Self-Governing Province to national institutions and permitting the construction of permanent facilities.

Furthermore, in November 2024, Bukpyeong District was designated as an opportunity development special zone, which significantly strengthened customized package support, including tax reductions, financial support, regulatory exemptions, and residential environment package support, further boosting corporate attraction.

Additionally, the diversification of support policies for companies entering industrial complexes is necessary. Many small and medium-sized enterprises in local industrial complexes have unstable revenue structures, making it urgent to introduce additional support measures such as improving residential conditions (housing, education, medical care, etc.) and increasing subsidies for attracting and retaining manpower, rather than focusing solely on tax reductions for large corporations. Therefore, GSFEZ plans to continue expanding legal and institutional support to ensure that investors and resident companies can smoothly carry out their businesses.

What are the Zone’s future priorities and plans?

Mangsang 1 District, a core project of the Gangwon Free Economic Zone Authority, aims to develop a global smart complex city with key facilities including international schools, golf and marine leisure sports facilities, and medical institutions. The authority is currently working on establishing a revised development plan. The revised development plan application is expected to be submitted to the Ministry of Trade, Industry and Energy by July this year, with the deliberation and approval announcement by the Free Economic Zone Committee to be completed before the end of the year.

For Mangsang 2 and 3 districts, the authority plans to complete the ongoing compensation for incorporated land and obstacles and finalize the development plan revision, which includes an increase in the total project cost, including construction costs, before the end of this year.

Okgye District will strive for flexible and active investment attraction that responds to market conditions and corporate demand, allowing for both sales and leases. For Bukpyeong District, the 8th application period for long-term lease complex occupancy was completed in June, and the authority plans to continue attracting excellent companies with the goal of completing leases for all plots within this year.