[Sponsored Report] Domestic and foreign firms to relocate to IFEZ

At an MOU ceremony to build a Shinsegae shopping mall, Chung Yong-jin vice chairman & CEO of Shinsegae (third from left); Incheon City Mayor Song Young-gil (fourth from left); and Lee Jong-cheol (second from right), commissioner of IFEZ Authority, pose for a photograph.

As many conglomerates relocate some of their departments to Incheon, investment in the area is increasing. Incheon city is planning to attract investment from local conglomerates which have already secured global competitiveness before moving onto foreign companies. The city plans to develop Incheon’s competitiveness as a global city as the area’s tourism industry is expected to grow as more and more talented people move to the area.

One of the local conglomerates that have invested in Incheon is Samsung Biologics.

Samsung Biologics held its plant ground breaking ceremony in May and hopes to become an internationally renowned destination for the production of bio medical products. Incheon Free Economic Zone hopes it will be the foundation stone of the industry in the region.

In addition LG Group’s V-ENS has signed an investment agreement to construct an automobile parts research institute within the Incheon Western Industrial Complex in September. An automobile parts research institute will be built on a 96,885-square-meter site. Near the institute about 1,500 companies that have an interest in automobile parts gathered to form an industrial cluster.

Korea’s Dong-A Pharm has signed a business agreement with a Japanese company to develop Biosimilars and is planning to construct its production and research facility within the IFEZ Songdo Bio Medi Park. Songdo Bio Medi Park is hoping to become a leader of bio industry with Celltrion, Samsung Biologics and Dong-A Pharm.

A Shinsegae shopping mall will open at Cheongna Area of Incheon Free Economic Zone. Shinsegae is investing 300 billion won ($261 million) including foreign investment. The mall will be constructed on a 165,290-square-meter site by 2015 and will contain entertainment, culture, leisure and shopping facilities.

With these developments the city is hoping it will become the starting point of activating investment and development in Cheongna Area and hope other related industries will get boost too.

German company Brose and Korea’s Mando have formed a joint company, Mando Brose. It will build an R&D center and construction center at Songdo high technology cluster. In addition Kaco New Energy is constructing a solar energy development inverter manufacturing plant and an R&D center in the region.

Incheon city has set up a special law for Yeongjong Development that will relax restrictions and help to increase financial support for companies investing in the area. A plan to construct a casino and resort and to create an IFEZ development fund is also underway.

Incheon City Mayor Song Young-gil said, “I will do my best to make Incheon an economic capital by attracting foreign and local investment from large companies and creating employment.”

Meanwhile as of November 1, the Ministry of Justice has confirmed that it will enforce “real asset investment immigration” at Unbuk leisure complex and Yeongjong Sky City within the Incheon Free Economic Zone. As the real asset investment immigration system has previously been adapted to accommodate other projects in the country, the city is hoping it will speed up foreign investment. The system was adapted on Jeju Island for the first time in February 2010. Since then it has contributed greatly to increasing the interest of foreign companies and huge scale investment through overseas real asset development companies. According to the Incheon Free Economic Zone with this new system it is expected more than 429 billion won of foreign investment and about 3,000 new jobs will be created. It is also expected to have a positive effect for the IFEZ among foreign companies and to attract many tourists to the IFEZ.

By Lee Ji-hyun [concordia@joongang.co.kr]