• Journal of Korea Port Economic Association
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• v.21 no.1
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• pp.111-132
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• 2005

With the globalization of economy, there is keen competition among countries to be a logistics hub and companies are striving to be first in establishing logistics system centering on advantageous sites, especially airport and seaports, to perform supply, production and distribution. Korea competing with Northeast Asia countries is also working out strategies in order to make Korea penninsula a logistics center of Northeast Asia taking advantage of its geographical strength. Gwangyang port has designated as Free Economic Zone together with Pusan and Jinhae, Incheon from October 24th, 2003. However, the introduction of Free Economic Zone in Korea lagged behind other major countries and it has a lot of operational problems. Approximately 600 areas worldwide are designated and operated as a Free Economic Zone and Gwangyang port and its surrounding area has several points to be settled as one of FEZ. First one is its limited functions and related laws on Gwangyang Bay. Next is imperfection on development, investment and management system of the FEZ. Lack of promotion activities could be one of the problems. If we want to activate the FEZ, we must induce investment at Gwangyang Bay. This paper analyzes the above problems and presents various measures to activate Gwangyang Free Economic Zone by inducing investment for innovation cluster as follows Benchmarking to promote Gwangyang Free Economic Zone as follows Benchmarking other countries' system, governmental support, introduction & logistics functions, early development of the hinterland, supply ofeffective one-stop service, investment attraction into the area and diversified promotion & marketing activities.

• Journal of Distribution Science
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• v.12 no.9
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• pp.113-123
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• 2014

Purpose - After Korea's Free Economic Zone (FEZ) system was launched in 2003, there have been many debates about upgrading it and its support systems. However, as of 2013, there were insufficient results. Further, upon the designation of the East Coast and Chungbuk as official FEZs from February 4, 2013 by the 56th the Commission, there is a concern that many people are in the area designated as FEZ 8. This study investigates Korea's new FEZ system as part of Korea's primary new economic development policy in the 21st century. Therefore, this study examines views on the weaknesses of the past ten years of FEZs so that Korea can expand its FEZ system. Research design, data, and methodology -Many countries have considered the FEZ as an economic special zone. By reviewing previous research models, this study provides an update using recent data and materials, until 2013, from the Center of Free Economic Zones. In previous studies, the lack of support systems was attributed to proposals to ensure operational autonomy and differentiation of each FEZ; however, the main cause cannot be solved through regulatory issues, as difficulties caused by the operational system are responsible for the problems. We wish to analyze the FEZ, specifically the operational system; this is the main issue of this study. Results - After the first FEZs were established, it became necessary to have basic plans, as investment results in 2013 compared to the same period this year led to lower earnings in the first half of 2014. We propose an improvement of the operational system because in the free economic zones, the operational system is the root cause of the underlying problem. The results of this research are as follows. The weak management of the FEZ system is influenced by weak investment, delayed development, foreigners' living facilities, benefits of foreign investments, the control tower's policy making decision process, quickness of the process of satisfying legal requirements, and support For the independence of FEZs. Conclusion - Local governments do not have legal rights over FEZ deregulation and investment industries. This study suggests that the local government should have more independence from the central government. Moreover, independent management committees are more effective for ensuring public rights, better employee responsibilities, and better-qualified personnel. The FEZ committee struggles to effectively manage the locations of FEZs, foreign investments, and related facilities under the control of the Ministry of Trade, Industry and Energy. Thus, the FEZ committee should be under either the Prime Minister's office or the Presidential committee, to control and effectively coordinate between the local and central governments. If the problem clearly applies to the operational system in 2013, it is necessary to provide materials and methods so that the results of the first half of 2014 can be computed despite the data limits and lack of resources, and the data can be analyzed in a more diachronic thesis.

• Journal of Distribution Science
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• v.11 no.2
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• pp.57-70
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• 2013

Purpose - The objective of this paper is to explain the successful methods for the revitalization of distribution and logistics of the least developed FEZs (Saemangum, Yellow-sea, and Deagu-Kyengbuk) in Korea. With the recent changes in the economic terrain of Northeast Asia as with the rise of China, Korea has developed a logistics hub concept for improving the efficiency of logistics and distribution industry and its distribution and logistics policy has received positive worldwide evaluation. Therefore, we face severe competition and must always look for ways to address these problems. Research design, Data, Methodology - This study adopts two methods to propose successful revitalization of distribution and logistics in the least developed FEZ. The first method investigates the limitation of these FEZs by analyzing the statutes, and the second one follows comparable cases. Thus, we first reviewed the efficient strategic political alternatives for the least developed FEZ, Yellow-sea, Seamangum-Gunsan, and Deagu-Kyeongbuk, through the relative institution system, law, and future plans. Next, we studied the Bin-hai Economic Free Section (Zone) in China as a comparable example. In order to analyze the competitiveness of logistics in the three FEZs (Yellow-sea, Seamangum-Gunsan, and Deagu-Kyeongbuk), the total factor productivity growth of regional manufacturing industries is divided into three sources: the external trade effect, scale effect, and technical change effect. However, this paper does not test for a positive contribution of external trade, which is a reason of non-building on these FEZs. A FEZ that shows a larger external trade effect than the others will have a comparative advantage in the logistics infrastructure and policy support. This study presented the newly applied Bin-hai FEZ in China, in order to make the studied FEZ as successful by applying the strategy of its distribution and logistics center. Results - In Korea, there is an increased focus on the benefit of the regional development of regions such as the Free Economic Zones (FEZ). We have six FEZs, Inchon, Busan-Jinhae, Guangyang, Yellow-sea, Seamangum-Gunsan, and Deagu-Kyeongbuk. However, our FEZs do not have various supporting factors needed for the logistics and distribution industry. Korea designated the above six places as FEZ and has operated to enhance national competitiveness and ensure a balanced regional development since 2003. However, most FEZs did not receive favorable feedback in the first business performance evaluation and it is necessary to take action for substantial improvements. Conclusions - Especially, over the past 10 years, even though the FEZ policy has been implemented in an effort to promote success in distribution and logistics, there are still many underdeveloped industries in logistics. The main problem is the absence of revitalization of the high value added performance in the distribution and logistics industry. However, there is a limitation to this study. We have used non-empirical method based on a case study to arrive at our findings. Future studies should use appropriate statistical methods to supplement our results and provide a solution to this problem.

• Journal of Korea Port Economic Association
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• v.20 no.1
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• pp.123-140
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• 2004

With the globalization of economy, there is keen competition among rountries to be a logistics hub and companies are striving to be first in establishing logistics system centering on advantageous sites, especially airport and seaports, to perform supply, production and distribution. Korea competing with Northeast Asia countries is also working out strategies in order to make Korea peninsula a logistics center of Northeast Asia taking advantage of its geographical strength. Gwangyang port has designated as Free Economic Zone together with Pusan and Jinhae, Incheon from October 24th, 2003. However, the introduction of Free Economic Zone in Korea lagged behind other major countries and it has a lot of operational problems. Approximately 600 areas worldwide are designated and operated as a Free Economic Zone and Gwangyang port and its surrounding area has several points to be settled as one of FEZ. First one is its limited functions and related laws. Next is imperfection on development, investment and management system of the hinterland. Lark of promotion activities could be one of the problems. This paper analyzes the above problems and presents various measures to activate Gwangyang Port and Gwangyang Free Economic Zone as follows Benchmarking to promote Gwangyang Free Economic Zone as follows Benchmarking other countries' system, governmental support, introduction & logistics functions, early development of the hinterland, supply of effective one-stop service, investment attraction into the area and diversified promotion & marketing activities.

• Journal of Korea Port Economic Association
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• v.31 no.4
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• pp.107-120
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• 2015

This study analyzes Korea's Free Economic Zone (FEZ), by particularly focusing on Incheon and Busan-Jinhae zones, using the Analytic Hierarchy Process (AHP) method and a questionnaire survey analysis. The study compares important selection criteria and satisfaction of resident companies in Incheon and Busan-Jinhae FEZs. The findings are as follows. First, the AHP method results suggest that companies in both Incheon and Busan-Jinhae FEZs are affected by location, economic society, and policy. In subordinate determining factor for land, it is ordered by ease of gaining land, inexpensive rental fee in Incheon and by convenient access to close markets and inexpensive rental fee in Busan-Jinhae. Second, the questionnaire survey results suggest high adjacent market size and easy access in Incheon FEZ and sound logistics infrastructure in Busan-Jinhae FEZ. For this reason, Incheon has a high value of logistics infrastructure and potential market near metropolitan area and Busan-Jinhae, has a high value of transportation Infrastructure near industrial district. These findings will contribute to policy data for activating and promoting the Free Economic Zone.

• Hwankyungkyoyuk
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• v.22 no.4
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• pp.53-65
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• 2009

Saemangeum is the largest reclaimed land in Korea. Saemangeum is the large scale project responding to the economic demand of globalization, and a government initiated new development business with a vision of global Free Economic Zone(FEZ). Jeollabuk-province conducted a international competition to establish a global-scale, creative development plan and grow the Saemangeum as an international destination of economy, and a world-wide brand. SGFEZ has much to offer in terms of tourists attractions and breathtaking scenery. And tourism is one of the important industry in SGFEZ. Many tourist facilities will be construct in SGFEZ. Environment is the important issue in many field of study. Recent days, green growth come into the spotlight in Korea. But even as SGFEZ prepares for its future global tourists attraction, so much of the tourism policy directions remains unconsidered. The objective of this study was to suggest tourism policy direction, especially concentrated on ecology tourism policy direction of Saemangeum Gunsan Free Economic Zone(SGFEZ).

• Journal of the Korean association of regional geographers
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• v.21 no.3
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• pp.461-473
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• 2015

The aim of this paper is to explore limits to the institutional formation and operation for network city as a case study of Daegu-Gyeongbuk Free Economic Zone (DGFEZ) in the introductory context. The legal and institutional framework of FEZ in Korea can be characterized by multi-dimensional, vertical or horizontal governance. However, in terms of its implementation process of DGFEZ, the density of the public-private network becomes relatively week, and consequently, the level of participation by local people was not institutionalized in a more collaborative way. With respect to the network city for DGFEZ, while at the initial stage its plan was highly focused upon the conceptual framework of the city, the process of its implementation was based upon a polarization strategy of individual unit and a performance-oriented type. Other evidence for it is that administrative organization in DGFEZ changed from development-based throughout investment attraction-focused up to region-based department. Therefore, there are limits to the institutional formation and operation for the network city in the context of DGFEZ.

• Journal of Korea Port Economic Association
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• v.25 no.1
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• pp.87-106
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• 2009

This paper is intended to suggest benchmarking ascension for the Gwangyang Port as a hub for international logistics. Most countries that seek to join. and lead, the global trading system as they work to develop production and logistics systems that establish a reputation for leadership in international logistics. Our focus in this research is on the Gwangyang Port and whether Gwangyang Port is capable of carving out a competitive niche as a hub of international logistics. Our analysis is based on comparison and analysis with benchmark port developments around the world. As proposals to promote and activate Gwangyang Port as a hub for international logistics, we recommended in this paper several benchmarks. First, Gwangyang Port FTZ must strengthen the incentive system for tenant companies and providing an inducement for new global companies. Second, Gwangyang Port needs to moderation of regulation on the investment tenant companies and strengthening one-stop service. Third, it is required to stabilize labor and management relationship and securing of flexibility of labor market. Lastly, Gwangyang Port must strengthen mutual interaction of Free Economic Zone (FEZ), Customs Free Zone(CFZ) and Free trade Zone(FTZ) in Korea.

• Journal of the Korean Geographical Society
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• v.49 no.1
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• pp.91-105
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• 2014

The objective of this study is to analyze the project performance and development process of the phase 1 project of GFEZ from 2004 to 2010. The phase 1 project from 2004 to 2010 is consist of eleven project zones. Among these zones, eight zones are currently underway and three zones have been completed. The performance of the phase 1 projects is no so much because it were stated later than planning with the difficulty of business developers selection. The major performances are development and supply of industrial & residential land, construction of road and railway, investment promotion of 102 companies, and creation of 20,971 new jobs. Most of the direct invested companies were located at Gwangyang and Yulchon Districts, and were mainly logistics and related service, iron and steel, machinery, shipbuilding, and fine chemicals. The main problems, however, are the limit of promotion of high-tech industries and large firms, low FDI reported rate, difficulty of superior business developers, delayed business progress of Hadong district. Therefore, efforts to solve these problems are required for the success of GFEZ.

• Journal of Korea Port Economic Association
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• v.24 no.2
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• pp.175-192
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• 2008

Today's individual firms no longer compete as solely autonomous entities, but rather as supply chain. As such the competitive position of a port is not only determined by its internal strengths but also it is also affected by its links in a global supply chin. In other words, port competitiveness is becoming increasingly dependent on external coordination and control of the whole supply chain. The main purpose of this paper is to examine how a port embeds itself into supply chain in order to strengthen its competitive position by focusing on Dubai port case. This paper found that Dubai port used three phases-insertion, integration and dominance-as a strategies for how it can embedded into global supply chain successfully. Dubai's global supply chain strategies give some implications for the further development of the Port of Gwangyang. First, the Port of Gwangyang should fully utilize symbiotic relationship with Gwangyang free Economic Zone. Second, the integration between Korea Container Terminal Authority and GYFEZ can be recommended for fast decision-making and providing a one-stop-service. Finally, Gwangyang should pursue an aggressive supply chain strategy, aims at dominance in the regional port network through port alliance with small and medium ports in neighboring area.