20th Anniversary of the Incheon Economic agency bears significally

By Feature Editor Kim Hyung-dae

Mayor Yoo Jeong-bok of the Incheon Metropolitan City said, “Inspired by the three core values of ‘Balance, Creation and Communication,’ and driven by your aspirations for new hope in Incheon, our city has taken remarkable strides in transforming Incheon into a ‘World-class City’ where all of its people can be happy.” Mayor Yoo published the impressive remarks to the citizens of the Incheon City and all the people in Korea and those around the world.

This statement of the mayor was well seconded to and fully augmented by remarks by Commissioner Kim Jin-young of the Incheon Free Economic Zone, which transpired at a recent interview at his office in the Incheon City. The following details were learned during the interview with Commissioner Kim:

The Incheon City celebrates the 20th anniversary of the establishment of the Incheon Economic Agency on Oct. 15, 2023. During this time, the Incheon Free Economic Zone (IFEZ) has filled in tidal flats, built skyscrapers, and attracted many foreign companies, creating a history of the "Sangjeon Walled Sea" that has become a global city in the spotlight.

The IFEZ was announced as Korea's first free economic zone on August 11, 2003, and over the past 20 years, Songdo International City has become a center for international business and the global bio industry, Yeongjong International City for aviation, logistics, tourism, and leisure, and Cheongna International City for finance, high-tech industry, and distribution.

In accordance with the Ministry of Trade, Industry and Energy's Third Basic Plan for Free Economic Zones, the Incheon Economic Agency is promoting the completion of the development plan by 2032, focusing on four core strategic industries such as bio and healthcare. The development rates are 86.6% for Songdo International City, 80.8% for Yeongjong International City, and 93.6% for Cheongna International City, respectively.

Incheon's achievements are impressive. First, in terms of foreign direct investment (FDI), the total FDI of $14.56 billion received by the IFEZ as of the end of July was more than 70 percent of the $20.8 billion declared by Korea's nine free economic zones (FEZs) as of the end of last year. This proves that the IFEZ has grown beyond Incheon to become a global FEZ that drives economic growth and job creation in Korea. The Incheon city Signed a facility investment agreement with Lotte Biologics

Lotte Biologics signs facility investment agreement

In addition, 15 international organizations, including the Green Climate Fund (GCF), which was created under the United Nations Framework Convention on Climate Change to support greenhouse gas reduction and climate change adaptation in developing countries, have established offices in Songdo G Tower in December 2013, making the IFEZ a center for international organizations.

The Incheon Global Campus (IGC), which aims to foster global talent by attracting world-class educational institutions, is home to five foreign universities, including the State University of New York (SBU), George Mason University, Ghent University, the University of Utah, and the Fashion Institute of Technology (FIT). In addition, the Stanford Center in Korea (SCIGC), a research institute affiliated with Stanford University, has moved in to study the implementation of smart city technologies and the development of sustainable urban models in Songdo. It is no wonder that IGC is now called a global education hub.

In addition, the attraction and establishment of international and foreign schools, such as the Chadwick International School in Songdo in 2010, Dalton Foreign School in Cheongna in 2011, and Calvin Manitoba International School in recent years, have contributed significantly to strengthening the IFEZ's competitiveness in creating an education hub. The IFEZ is also promoting the establishment of the Harrow School, the first of its kind in Korea.

It is also promoting the establishment of the Golden Terra City International School in Yeongjong, and is actively communicating with foreign school corporations to attract additional international schools in Cheongna International City.

The Songdo Bio Cluster, which is being built on a total of 2 million square meters of industrial, educational, and research land in Songdo 4-5-7-11 by 2030, has secured its absolute status as a global bio cluster as Korea's big three bio companies, including Celltrion, Samsung Biologics, and SK Bioscience, and global raw material companies such as Merck and Sartorius, continue to invest in large-scale R&D and manufacturing facilities.

Recently, a land supply contract was signed with Lotte Biologics to build a biopharmaceutical plant in Songdo District 11, confirming the global competitiveness of the Songdo Bio Cluster. In fact, Songdo Bio's achievements are remarkable. It already has the world's largest biopharmaceutical production capacity in a single city with 1.16 million liters as of this year, and will reach a total of 1.7 million liters when the Samsung Biologics 6, 7, and 8 plants are completed.

Incheon Startup Park, which officially opened in February 2021, has been called the "Korean Silicon Valley" as it has become a hub for innovative startups in Korea by providing intensive support for startups with products and services through demonstration, investment, and global expansion support programs.

The IFEZ's creation of a smart city, which provides five public services including transportation, crime prevention and disaster prevention, environment, and facility management through the convergence of ICT (information and communication technology), is also a great achievement over the past 20 years.

Now, with the vision of a 'global future city, smart innovation hub IFEZ' by further enhancing smart city services, the IFEZ is promoting the first phase of the 2030 IFEZ Smart City Promotion Strategy, which is based on urban space innovation, citizen participation, business incubation, and data hubs by 2030.

The construction of Songdo Waterfront, which is being promoted to secure dimensional safety through the establishment of a water circulation system, improve water quality, create a marine ecological city where nature and people coexist, and revitalize the tourism industry, is also well underway, following the completion of Phase 1 in June last year, holding a briefing session for residents, launching an activation plan establishment service, and completing an implementation design service for Phases 1-2.

Cheongna International City is also taking off. It is ambitiously promoting plans such as the 'Cheongna G-Tech City' project, which will transform Cheongna into the Silicon Valley of the game industry.

In addition, the city is also accelerating bold projects such as Starfield Cheongna, which is being built as a new paradigm landmark combining a multi-stadium (dome ballpark) and a shopping mall, the world's first next-generation sports, culture, and entertainment complex. Cheongna is also home to a new BMW R&D center and a Costco Cheongna store.

The Cheongna Medical Complex Town, which passed the deliberation of the Ministry of Trade, Industry and Energy's Free Economic Zone Committee at the end of last year and secured momentum for the project, is being built with Cheongna Medipolis PFV as the operator with 800 beds in the first phase.

The Hana Dream Town project, which will house the group's headquarters (HQ) after the integrated data center in phase 1 and the global talent development center in phase 2, is expected to leapfrog Cheongna into a financial hub.

In Yeongjong International City, a complex resort integration project is underway that will contribute to the creation of a world-class tourist city, the creation of high-quality jobs, and the revitalization of the local economy. Mohegan Inspire Entertainment Resort is investing about KRW 1.9 trillion to build an ultra-large-scale complex resort on a 4.3 million-square-meter site in the 3rd International Business District, west of Incheon International Airport Terminal 2.

The Inspire Complex is expected to be completed and open for business by the end of the year (Q4), with hotels, arenas (specialized performance venues), and mice facilities.

As an essential facility to leapfrog Yeongjong International City into a tourism center in Northeast Asia centered on Incheon International Airport, Inspire and other three complex resorts are expected to contribute significantly to expanding tourism infrastructure, creating youth-oriented jobs, and revitalizing the local economy through organic linkages and integration with other resorts such as nearby Hansang Dream Island.

In order for the IFEZ to make a "Quantum Jump" on its 20th anniversary, there are many issues that need to be resolved. First, foreign educational institutions established under the 'Special Act on Establishment and Operation of Foreign Educational Institutions in Free Economic Zones and Jeju International Free City' must be added to the list of continuing education institutions.

This is because they are unable to respond to the increasing demand for continuing education, which has led to a decrease in the investment of foreign school corporations in FEZs and a failure to meet the continuing education needs of the local community.

The central government also needs to improve the system. First, it is necessary to improve the mandatory regulations that currently require feasibility studies and investment reviews for new projects with a total project cost of more than 50 billion won in FEZs.

Free economic zones are government-led projects promoted to enhance national competitiveness, and are projects with proven feasibility that are designated through consultations between central ministries such as the Ministry of Trade, Industry and Energy, the Ministry of Strategy and Finance, and the Ministry of the Interior and Safety, as well as deliberations by the Free Economic Zone Committee. Accordingly, the Ministry of the Interior and Safety's Local Finance Investment Project Review Rules should be revised to streamline administrative procedures by exempting feasibility studies and investment reviews so that projects can be expedited.

The Incheon Economic Agency believes that as competition among countries and cities becomes more intense, it is important to make new breakthroughs and create a foothold to become a world-class city through various investment strategies.

Accordingly, it plans to create a new industrial ecosystem. It will focus on fostering K-content and game industries, expanding the Songdo Bio Cluster, and creating a future medical complex.

In addition, it plans to strengthen its status as a global city. To this end, it will promote the Songdo English-speaking city in earnest and attract prestigious foreign schools. We will make the IFEZ an international business city with an ever-increasing number of domestic and foreign companies and jobs, actively attracting domestic and foreign companies related to new growth, and revitalizing the service industry, which is closely related to job creation.

The government also plans to work to create a sustainable FEZ. It plans to visualize the designation of additional FEZs in Songdo, Incheon Inner Port, and the southern end of Ganghwa, and actively work to revise the FEZ Act to improve the system, including innovative deregulation.

History of Incheon:

Incheon was first known as Michuhol. Incheon emerged as an administrative district known as 'Maesohol-hyeon' during the reign of King Jangsu of Goguryeo (475 AD).

After Silla united the Three Kingdoms of Korea, the district was renamed as Soseong-hyeon using Chinese characters during the reign of King Gyeongdeok of the Silla Dynasty. During the reign of King Sukjong of Goryeo (1095~1105 AD), the district was renamed and elevated as 'Gyeongwon-gun' because it was the birthplace of the King's mother.

Later on, during the reign of King Injong of Goryeo (1122~1146 AD), the district was elevated once more into 'Inju' since it was the birthplace of Queen Seondeok. Although ‘Inju’ was almost razed to the ground after an unsuccessful rebellion by Lee Ja-kyum, it was returned to ‘Gyeongwon-bu’ during the 2nd year of King Gongyang of Goryeo (1390 AD).

The district was restored because it was the so-called 'Childae Eohyang (Birthplace of Seven Generations of Kings)', a region intimately related to seven generations of Kings from King Munjong to King Injong of the Goryeo Dynasty. Once the Joseon Dynasty was established, 'Gyeongwon-bu' was reorganized as 'Inju' once again.

However, during in the 13th year of King Taejong of the Joseon Dynasty, the Royal Court ordered every 'gun' and 'hyeon' (two county level districts) below the 'dohobu' administrative level with the word 'ju' in their names to incorporate either the word 'san (mountain)' or 'cheon (river)'.

Hence, 'Inju' became 'Incheon' which remains the name for the district to this day. Incheon has chosen the very day the district was renamed as Incheon (October 15, 1413) as 'Incheon Citizen's Day'.

Located in the heart of Northeast Asia, a region that constitutes one-fifth of the world's economy, Incheon enjoys a significant strategic advantage--it has 147 cities with a population of at least one million people within three hours by airplane. Incheon's old city center has a thriving and competitive industrial sector, whereas the Free Economic Zone (IFEZ) is quickly becoming an important new growth engine for the Korean economy.

Incheon prides itself on its unique infrastructure and logistics/transportation systems, including Incheon International Airport and Incheon Harbor, all of which help support various business activities.

The sheer number of companies that have already invested in Incheon serves as proof that the city is a great place to conduct business.

Each year, numerous domestic and global corporations are increasing the size and scope of their investments. Incheon's outstanding residential environment is another important factor that drives investment into the city.

With a convenient and safe urban environment, combined with excellent education, living culture, leisure, and shopping facilities, Incheon is perfectly suited for both domestic and foreign residents. Incheon is widely regarded as one of the best cities in Northeast Asia for businesses and corporations.

It produces talented individuals equipped with the experience and capacity to work on the global stage through the Incheon Global Campus. The city is also home to 15 UN-affiliated agencies and other international organizations. Incheon has everything a global company needs. Invest now!