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All FEZs   |  MOTIE Holds Meeting of the KFEZ Innovation Promotion Commission with Seven Free Economic Zone Authorities

MOTIE Holds Meeting of the KFEZ Innovation Promotion Commission with Seven Free Economic Zone Authorities
- For presentations and reviews of the cluster-building progress being made by each Authority,
including an IFEZ plan to create a bio-cluster in Songdo -

On Wednesday, June 12, the Ministry of Trade, Industry and Energy (Minister Sung Yun-mo) held the 4th Meeting of the KFEZ Innovation Promotion Commission
jointly with the seven nationwide Korea Free Economic Zone (KFEZ) authorities. Participants discussed ways of promoting the innovation of free economic zones
by sharing information about a variety of topics, including the progress that each zone is making at developing local industrial clusters and ways of discovering cases
where regulatory innovation (so-called “regulatory sandbox”) can be introduced.

The Commission was formed to obtain and share information about KFEZ innovation-led growth projects following policy changes announced under the 2nd KFEZ Master Plan
in November 2018. With these changes, KFEZ efforts are moving from a focus on development to one of innovative growth.
These meetings of the Commission, held twice last year, provide a forum for the individual FEZ authorities to meet and discuss projects and strategies for promoting innovation-led growth,
as well as to share progress in executing innovative-led growth projects that have been identified and ways of further developing these projects in the future.

At this meeting, the IFEZ announced the Songdo Global Bio-Cluster Creation Plan, an initiative aligned with the goals of the 2nd FEZ Master Plan.
The main strategy under this plan is to move from the current focus on large, top manufacturers to an industrial ecosystem in which leading SMEs and mid-level companies,
venture companies, manufacturing and other R&D centers, and support agencies are all concentrated together in one place. Based on this strategy,
the IFEZ is planning to create a world-class bio-cluster, targeting 250 tenant companies and a total of 15,000 employees.

The BJFEZ announced plans for an industrial convergence complex for eco-friendly vehicle parts and a logistics cluster. Having attracted the factory production facilities
for the Renault ultra-small electric car (Twizy) to Busan, BJFEZ is now working to develop domestic capabilities and modular production in parts manufacturing,
and announced plans to bring in leading e-commerce tenant firms to the Advanced Logistic Center in the Dudong Area.

The GFEZ shared plans to create a functional and bio-chemical materials cluster. Centered around the KTR (Korea Testing & Research Institute) Materials Convergence Support Center,
he anchor tenant in the Sepung Industrial Complex, the GFEZ is planning to support R&D efforts that demonstrate core technology and to support the technologies of related companies.
The GFEZ also discussed ways of building clusters around systems of mutual cooperation with other organizations,
including petrochemical companies located in the Yeosu National Industrial Complex (LG Chem, Lotte Chemical, GS Caltex, Hanhwa Chemical, etc.) and local research centers and universities.

The DGFEZ is planning to create an industrial convergence complex for the integration of the robotics industry and consumer goods. To do this, the zone is working
to attract 63 companies in the fields of robotics and other future-oriented strategic industries, including the Korea Institute for Robot Industry Advancement and Hyundai Robotics
in the Technopolis area. Representatives from the DGFEZ explained that the zone is promoting joint tenancy within the Gyeongsan-Intelligent industry Bizhub Development (G-iBD) area
by companies in consumer goods (such as companies producing glasses), and working to build a foundation for and create a campus to support a combined fashion-technology industry.

The CBFEZ announced plans to build a bio-medical cluster based on cooperation between industry, academia, commercial research, and government.
This cluster will include facilities for bio-pharmaceutical companies, six government-funded organizations, and six national bio-medical facilities.

Finally, the EFEZ discussed its plans for promoting the Okgye special aluminum alloy processing cluster.

FEZ Planning Office Director-General Kim Yong-chae, the convener of this Commission meeting, explained that the Office will lead work through these investment project
and clustering initiatives to create new industries, achieve locally balanced development, and create jobs. The Office will also work closely with related government organizations
to discover cases where regulatory innovation can be developed and to design support packages that include regulatory innovation, R&D, support centers, basic infrastructure and other support measures.