IFEZ hits 51% of 2025 FDI target in Q1 with $309M raised

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IFEZ hits 51% of 2025 FDI target in Q1 with $309M raised

Published: 09 Apr. 2025, 10:14

Foreign companies investing in the Incheon Free Economic Zone (IFEZ) pose for a photo after the “IFEZ Foreign Investment Companies CEO Policy Meeting” held at the Gyeongwonjae Ambassador Incheon hotel on March 11. [Incheon Free Economic Zone]

The Incheon Free Economic Zone (IFEZ) reported $309.61 million in foreign direct investment (FDI) in the first quarter of 2025, attaining 51.6 percent of its annual target in just the first three months of the year.

After taking office last year, IFEZ Commissioner Yoon Won-seok raised the FDI target to $600 million, hitting $605.84 million in 2024. The trend is continuing this year, with FDI in the January-March period posting IFEZ’s second-highest performance since its establishment in 2003.

Under the “2025 IFEZ Comprehensive Investment Attraction Plan,” the zone is pursuing investments in three key sectors: medical and bio industries, advanced strategic industries, and tourism, leisure and cultural content industries.

The first quarter saw impressive FDI declarations in biotech and advanced materials. Sartorius, a global bio parts company, invested an additional $250 million to expand production, research and contract testing facilities, adding to its previously confirmed $300 million investment. Lotte Biologics will invest $28.7 million in its Songdo Bio Campus Plant 1, following investments of $55 million in 2023 to 2024.

TOK Advanced Materials invested in expanding its inspection building, creating facilities to develop extreme ultraviolet photoresists for semiconductor processes. Britain-based HellermannTyton, a cable maker, has continued investment since establishing operations in 2014 with a $2.5 million investment.

IFEZ has also secured numerous letters of intent for the K-Con Land project and southern Ganghwa Island, with follow-up visits from global visual and cultural companies.

The zone is pursuing development plan approval and expansion of the free economic zone designation for the island by the end of this year through investor identification, collaboration with Ganghwa County and various campaigns.

The strategy includes attracting global production companies through tax reductions and refunds for visual and cultural industries. These firms will be brought to the Yeongjong-Cheongna aerotropolis — an urban area designed around aviation — to accelerate the development of the K-Con Land visual culture cluster.

“We will exceed our FDI target of $600 million this year. To attract foreign investment, we need bold tax reforms and customized incentives. We will proactively develop incentives in line with government policies,” said Commissioner Yoon.

He emphasized the urgent need to restore corporate tax reductions for foreign investments and expand cash grants to remain competitive when attracting global companies.

BY LEE YEBIN [[email protected]]

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