The Incheon Free Economic Zone (IFEZ) Authority is set to submit its application by the end of June to designate the southern end of Ganghwa Island as a free economic zone – a move that officials described as “the final piece” in IFEZ’s longstanding development blueprint.
The authority announced on Wednesday that it is entering the final administrative phase to secure approval for the project in Ganghwa, adjacent to Incheon International Airport.
IFEZ plans to receive citizens’ opinions on the project, designed to transform the largely undeveloped land into a high-tech industrial and cultural-tourism hub, through June 23.
A final expert review session led by Korea’s Ministry of Trade, Industry and Energy is scheduled for June 16.
Location of the new proposed Incheon free economic zone at the southern end of Ganghwa (Courtesy of IFEZ) Following the procedures, IFEZ plans to formally apply for the designation later this month.
If all goes to plan, central government approval and a formal designation of the region as an Incheon free economic zone will likely be announced in the second half of this year.
The southern Ganghwa development project spans 6.32 square kilometers, covering parts of Hwado-myeon and Gilsang-myeon in Ganghwa County. Total investment is estimated at 3.2 trillion won ($2.3 billion).
STRATEGIC LOCATION WITH DUAL IDENTITY
Strategically positioned near Incheon International Airport, southern Ganghwa is seen as an extension of the existing IFEZ triangle of Songdo, Yeongjong and Cheongna.
Location of a new planned Incheon free economic zone at the southern end of Ganghwa (Courtesy of IFEZ) Unlike its predecessors, largely focused on finance, logistics and R&D, the southern part of Ganghwa aims to blend future industry with Korea’s cultural and ecological heritage.
The plan outlines three core development themes: a sustainable smart city powered by AI and advanced manufacturing; a K-culture tourism destination integrating natural and historical assets; and a green, livable urban environment aligned with eco-conscious development.
“The region will become a new anchor for Korea’s next-generation economy, harmonizing cutting-edge technology with cultural and environmental assets,” said IFEZ Commissioner Yun Won-sok. “It is not merely an extension of IFEZ, but a recalibration of what a free economic zone can be.”
Location of a new planned Incheon free economic zone at the southern end of Ganghwa (Courtesy of IFEZ) BIOTECH CLUSTER & AI-DRIVEN INDUSTRY
A centerpiece of the proposal is the creation of an integrated K-bio cluster aligned with Korea’s national “Bio Transformation Strategy.”
The project envisions a convergence of a wide spectrum of bio industries –red bio (pharmaceutical), green bio (agriculture and food), blue bio (marine) and white bio (energy and environment).
The red bio segment is expected to leverage Ganghwa’s traditional herbal resources to develop functional medicine and clinical trial networks.
The green bio strategy will tie in local agricultural specialties and explore genetically enhanced crop R&D.
Plans also include smart factories, robotics, AI and next-generation mobility technologies within an advanced manufacturing corridor, according to IFEZ.
A panoramic view of Songdo's 11th District, South Korea’s biotechnology industry hub (Courtesy of IFEZ) TOURISM BUILT ON CULTURE, NATURE
To complement its industrial ambitions, the development plan includes investment in immersive tourism infrastructure, including cultural experience zones, eco-trails, boutique accommodation and leisure facilities, drawing on Ganghwa’s rich heritage and proximity to the West Sea.
The zone’s dual identity – high-tech and high-culture – is expected to diversify both Incheon’s industrial portfolio and Korea’s global tourism offerings, according to IFEZ officials.
“This is a cornerstone project for securing Incheon’s long-term competitiveness,” said Commissioner Yun. “We will transform southern Ganghwa into a gateway for advanced industry and global tourism, while elevating the role of border regions in national development.”
Established in 2003 as South Korea’s first and largest free economic zone, IFEZ has been Korea’s main business hub west of Seoul.
In April, IFEZ said it attracted $309.6 million in reported foreign direct investment (FDI) in the first quarter, marking its second-highest quarterly performance since the agency’s inception.
Write to In-Soo Nam at isnam@hankyung.com Jennifer Nicholson-Breen edited this article.
