동북아경제중심을 위한 경제자유구역 외자유치 전략: 인천경제자유구역사례를 중심으로

FDI Inducement Strategy of Free Economic Zone for Northeast Asian Cooperation Initiative: The Case of Incheon FEZ

Three years ago, Korean government designated three areas, i.e., Incheon, Busan/Jinhae, and Kwanyang, as free economic zones (FEZs) for business hub of Northeast Asia as a national competition policy corresponding to Hong Kong, Singapore, and Shanghai. However foreign direct investment (FDI) inflows into FEZs, especially in Songdo district of Incheon, was insufficient unlike expectation. With this in mind, this paper argues seven strategies for inducing FDI as follows. Firstly, the promotion activities should contain each area s locational advantages as well as the FDI patterns such as ownership control share, industrial sector, etc. Secondly, in order to increase a demand of new investments, the business model reflecting local ownership advantages should be proposed to potential investors. Thirdly, it is necessary to enforce one-stop service for investors from the initial stage of acquiring investment leads to establishing business facilities in invested area. Fourthly open cluster constructing can be of help to increase an attractiveness of FDI environment. Sixthly, it is necessary to improve investment incentive regime. Seventhly, the government fiscal expenditure should be spent firstly in constructing a business related infrastructures. We suggest that policy makers in charge of FEZ project should consider above seven FDI strategies, if they want to accomplish an original goal of establishing FEZ, to make a business hub and source of future competitiveness.