Bridging Culture Worldwide

Songdo IBD

By Don Southerton, Songdo IBD CityTalk Editor and Chief Blogger

The Korean press frequently shares Incheon Free Economic Zone’s (IFEZ) amazing progress. At the heart is Songdo IBD. This Korea Herald article does a great job pointing out that within the greater IFEZ, Songdo is one of three districts. Within Songdo is the international hub–Songdo IBD–which includes among a number of high profile projects,  the International School, Jack Nicklaus Golf course and community, Central Park, 1st World  Towers, and the Northeast Trade Center.

Korea Herald notes:

The Incheon Free Economic Zone has begun to take shape as a new global financial and logistics hub in Northeast Asia with the first phase of its development project scheduled to be completed this year.

The planned city, some 30 kilometers west of Seoul, features a working and living environment built to meet the standards of global companies.

The first phase of the project included reclamation work that has created 12.11 million square meters of coastal land and completion of infrastructure facilities for mass transportation and quality living.

Once this new infrastructure is established this year, Incheon aims to create new jobs by attracting multinational companies.

The IFEZ, an hour’s drive from Seoul, will bring a shift in the region from being manufacturing-based to knowledge-based, and foster a value-added industry by establishing a service-oriented infrastructure, the IFEZ Authority said.

The IFEZ will be comprised of three major districts, each taking on a special function. Songdo will serve the biomedical field and global education institutions; Yeongjong will function as a transportation and logistics hub; and Cheongna will host a robot-themed amusement park. Since its establishment in 2003, the IFEZ has signed a total of 41 memoranda of understanding for a combined $57.9 billion in foreign direct investment, the IFEZ Authority said.

Songdo has been selected by the government to be developed into a state-of-the-art medical and welfare complex by 2020 – a project worth 3 trillion won in government investment. Songdo is aiming to build top-notch infrastructure that would make it a people-friendly and health-oriented district.

Songdo sits on more than 13,047 acres and it is expected to be developed into six main clusters: international business center [commonly referred to as Songdo IBD], knowledge-based industry complex, biotech complex, information technology cluster, international academic complex and the Incheon new port.

Starting July this year, underground trains will start to connect Songdo and Incheon. Songdo International School, which will run kindergarten, elementary, middle and high schools is scheduled to open in September.  A 405,000-square-meter central park located in the center of Songdo International Business District will be completed in June.

In addition, with the 12.3-kilometer bridge to be completed in October this year, the IFEZ will be only 15 minutes away from Incheon International Airport. The Incheon Bridge currently being built by a construction unit of Samsung C&T is to be the world’s fifth longest cable-stayed bridge. The construction will cost 2.5 trillion won, the authority said.

Even with the blueprints for the IFEZ, the lack of government support in building infrastructure and remaining regulations is making it hard for the IFEZ Authority to lure foreign investment, especially in times of economic decline, the office said.

“FEZs are supposed to offer a business-friendly environment as well as favorable tax breaks and other benefits to foreign investors. But not in FEZs in Korea,” an official of the IFEZ Authority said.

“The government also needs to simplify all the administrative work suitable for foreign investors,” he added.