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Ulsan announced FEZ plan to apply for designation next month

According to Yonhap News,

(ULSAN=Yonhap News) Ulsan City announced "Ulsan Economic Free Zone Development Plan" on August 8, collecting opinions from residents by the end of this month.

The city asked Ulsan Development Institute (UDI) since October last year, carrying out "Ulsan FEZ Development Plan Research Project".

The development plan (proposal), according to the city, is established by comprehensively reviewing the requirements of the MOTIE's 2nd FEZ basic plan, requirements for conditions to be designated as FEZ by special act, differentiation with other strategies, connectivity between industries, direction of Ulsan's industrial strategy, and regions affected by the plan.

The basic idea was based on the vision of "Energy hub in Northeast Asia: Ulsan FEZ", setting out the concept of "Transit towards the hub of Hydrogen Industry, Nuclear Reactor Decommissioning Industry, and Energy Trading to become the largest energy center in Northeast Asia."

Five districts (proposal) are as follows: Hydrogen Industry, Green Mobility, R&D Business Valley, Energy Convergence, and Northeast Asian Oil and Gas.

The city plans to apply for the designation of FEZ to MOTIE by the end of September.

Next steps are government evaluation (October-November), preliminary designation of FEZ (December), and official designation following consultation with relevant agencies (early next yar).

The 1st FEZ was designed to improve business environment of foreign-invested companies and living environment of foreigners, developing as a mix of industrial, commercial, logistics, and housing areas since 2003. There are seven FEZs including Incheon, Busan-Jinhae, Gwangyang Bay, West Sea, Daegu-Gyeongbuk, East Coast, and Chungbuk, in the area of 291 281㎢.

The 2nd FEZ basic plan (2018-2027) has turned away from focus on foreign investment attraction of the 1st plan, stressing innovative growth of regional economies by fostering new industries and revitalizing manufacturing industry.

Once Ulsan is designated as FEZ, the city expects it will receive incentives in various forms such as easing regulations, tax breaks for developers, tax and financial support for domestic and foreign investing companies, stimulating investment from companies home and abroad.

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Source Text

** This article was translated from Korean.

Source: Yonhap News (August 8, 2019)