Adminstration Agency of Donghae Free Trade Zone Office

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    • About Free Trade Zone Office
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Donghae Free Trade Zone

  • About Free Trade Zone

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  • About Free Trade Zone Office
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Free Trade Zone Office

  • FTZ guarantees free manufacturing, logistics, distribution, and trading activities. As such, It is a designated area for attraction of foreign investments and promotion of trade, employment, and technologies, thus contributing to national and regional economic development.
  • Established in December 2005 under the Act on FTZ Desig
    nation and Operation, DFTZ is being fostered as a logistical
    hub of Northeast Asia. It provides the best investment environ
    ment for corporate businesses.
  • All administrative services, including foreign investment reports, factory construction approval, and export and import approval are handled by AADFTZ of MKE with a one-stop service system geared toward enhancing investor convenience. As such, DFTZ is committed to attracting foreign investments and promoting exports.
  • Various incentives, including tax breaks, low rental fees, and support facilities, are provided to foreign investors in accordance with related laws. In particular, DFTZ is a non-tariff zone, thus boosting export and import convenience.

Significance and Types of FTZs

Significance and Types of FTZs

  • Significance
    - A special zone that allows exceptional incentives, including waiving of tariff for trade, production,
    and investments in a state
    - A special zone that implements global standards and provides a foreign-investment-friendly environment.
  • Types
    - Production-oriented FTZs: Aim to activate foreign investments in the manufacturing
    sector(Masan,Gunsan, and Donghae FTZs, Taiwan's export zone, etc.)
    - Trade-oriented FTZs: Aim to promote international trade by easing regulations
    (Hamburg in Germany, Amsterdam and Rotterdam Port in the Netherlands, etc.)
    - Production-and-trade-combined FTZs: Aim to vitalize all economic activities
    (FTZs in the USA, Hong Kong, and Singapore)

Examples of FTZ

Korean FTZs (as of 2010)

Korean FTZs (as of 2010)
Category Masan Iksan Gunsan Daebul Donghae Yulchon Ulsan Gimje
Designation
time
Jan. 1970 Oct. 1973 Oct. 2000 Jan. 2002 Dec. 2005 Dec. 2005 Dec. 2008 Dec. 2008
Area (1,000㎡) 953 309 1,256 1,157 248 343 1,297 992
Remarks   2011: Will be
converted
into
an industrial
complex
        Planned to
be
established
by 2011
Planned to
be
established
by 2011

Economic Effects

Promotion of foreign investments by creating a specialized investment environment

  • FTZ provides sites for rent with low fees; combined production, logistics, and distribution functions; and the agency's one-stop total support services.
  • FTZ provides low-priced industrial sites, enables business commencement upon start of tenancy, and gives support for even small qualified investments, thus putting it in an optimal position to attract high-tech foreign investments.

International Trade Hub

  • FTZ provides the combined functions of logistics, distribution, processing, and manufacturing, thereby vitalizing internal trade.
  • FTZ vitalizes foreign-local business linkages, thereby enhancing local business competitiveness.

Contribution to Regional Economic Development

  • Each municipality can operate its own FTZ as a production, trade, or combined-function FTZ, using the FTZ as a crucial means to promote regional industrial and economic development.

Refining of Industrial Structures

  • FTZ attracts world-class multinational corporations with cutting-edge technologies and market leadership and facilitates the attraction of new capital goods, the transfer of sophisticated technologies, and the dissemination of advanced management skills, thus helping enhance local enterprise productivity and refine local industrial structures.

Adminstration Agency of Donghae Free Trade Zone

COPYRIGHT(c) 2008. ADMINISTRATION AGENCY OF Donghae Free Trade Zone, Ministry of Knowledge Economy [Zip code:240-230], AADFTZ.MKE, #247 Guho-dong. Donghae-si, Gangwon-do. |  Tel 033-522-6181 Fax 033-522-6062

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