YESFEZ is a special economic zone located near the port of Pyeongtaek in the southwestern part of Gyeonggi Province. Foreign resident companies are provided with 100 percent exemption of corporate tax and income tax for up to seven years, according to the YESFEZ Authority.
The authority said it has so far attracted more than 25 companies and over $2 billion for the special economic zone and is ramping up efforts to further draw foreign investment.
|Bird's-eye view of Pyeongtaek BIX (YESFEZ)|
In March, two Japanese companies, Technopia and Kokusai Express, signed an agreement with the YESFEZ Authority to make an investment of around 16 billion won ($14 million).
Technopia has a diverse business portfolio that includes tire wheel drums, medical devices and real estate. It plans to invest 6 billion won in the Pyeongtaek business complex to establish 6,600 square meters of plants for automobile parts.
Kokusai Express is a logistics company in the areas of land, sea and marine. It aims to generate 1 trillion won in sales by 2020 and plans to invest 10 billion won in the special economic zone to build a total of 16,500 square meters of distribution facilities.
In January, Singaporean company Sumifru signed with the YESFEZ Authority to make an investment of around 33 billion won for 50,000 square meters of facilities that distribute fruit from Singapore. It will newly create around 60 jobs.
Sumifru is a global company that jumped into Korea in 2003 to sell fruit such as bananas and pineapples through the port of Pyeongtaek.
According to the regional authority, Sumifru invested in the special economic area due to the proximity to Seoul, convenient logistics via advanced transportation, and the convenient inflow through the port of Pyeongtaek.
“We hope facilities for manufacturing and distribution invested by foreign companies will serve as key bases for regional economic development by integrating with neighboring companies,” said Lee Hwa-soon, chief of the YESFEZ Authority.
“We will strengthen investor relations activities in cooperation with diverse overseas organizations,” she said.
By Shin Ji-hye (email@example.com)