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IFEZ: A Global Business Hub City, Part 2

June 10, 2024 Don Southerton Global Business Comments Off

Just us in Part 2 of Korea’s Money Today’s interview with Dr. Peter Wonsok Yun, Commissioner of the Incheon Free Economic Zone Authority, and his Q and A.

I provided the translation and editorial review. Please check it out. Few grasp global developments as well as Dr. Yun.

Dr. Wonsok Yun, Commissioner of Incheon Free Economic Zone Authority,
(Photo provided by Incheon Free Economic Zone Authority)

The following is a Money Today Q&A with Commissioner Yun. In Part 2 of the interview, Dr. Yun shared his insights, thoughts, and plans.

Q. Please briefly explain IFEZ

IFEZ was designated “Korea’s first free economic zone” on August 11, 2003. At the time, no one could have imagined reclaiming the desolate West Sea mudflats and turning them into a global city.

Over the past 20 years, IFEZ has successfully transformed ‘Songdo, Yeongjong, and Cheongna’ into international cities with exceptional innovation and lifestyle.

Above all, we are proud of what we have achieved — our original goal of ‘attracting foreign investment’.

Last year, the environment for attracting domestic and foreign investment contracted due to the war between Russia and Ukraine, but we achieved $432 million in FDI, a 10.7% increase compared to 2022.

Large multinational corporations and research institutions were established, fostering a global startup ecosystem where international talents, including overseas Koreans, congregate and collaborate.

The role of IFEZ is crucial for the success of Incheon City’s 8th popularly elected core policies, ‘Global Top 10 Cities (New Hong Kong City)’ and ‘Jemulporn Renaissance’.

It is now time to lay the foundation for long-term, sustainable growth in the future.

Q. What needs to change to lay the foundation for sustainable growth?

So far, IFEZ has adopted the ‘linked development’ approach, which involves constructing profit-making facilities alongside public facilities. The profits generated from the development and land for private apartments and businesses have been channeled for public facilities such as parks and social infrastructure (SOC) for the city.

Significant progress has been achieved in developing infrastructure for smart and international cities through this interconnected method. However, the development is highly residential, which limits its ability to attract domestic and foreign companies for business and job creation.

Now that IFEZ is 20 years old, we aim to develop a new model that integrates linked development and investment attraction.

We will attract strategic industries to fulfill the core function of the free economic zone as a ‘global business hub’ and to advance in name and reality.

We need to provide a driving force for new industries, such as start-ups, and foster the AI industry.

Q. The target for foreign investment attraction this year is set at $600 million. What is the strategy?

This year, we plan to expand our strategy to attract “global IR companies” and bring in more cutting-edge companies.

In addition, we will achieve this year’s target of $600 million by establishing a ‘Day Station Incheon Strategy’ where companies gather in Incheon.

We will take the lead in balancing development within the existing industrial complexes in the original city center of Incheon. To this end, we plan to strengthen our network by collaborating with the Korea Trade-Investment Promotion Agency (KOTRA) and the World Federation of Overseas Korean Traders Associations (World OKTA).

During the first half of this year, we are putting every effort into our high-tech industrial complex strategy in the bio-pharma sector.

We believe that Songdo, which already possesses world-class biopharmaceutical production capabilities, is the perfect match.

We are putting our efforts into attracting a bio-specialized complex to build a ‘Bio-Triangle’ connecting the Songdo-Namdong-Yeongjong region.

As the companies in Songdo possess advanced strategic biotechnologies, as noted by the Ministry of Trade, Industry, and Energy, I believe it is the most suitable region for the government’s industrial development.

Q. Why are you pursuing additional FEZ lands, including the southern end of Ganghwa and Incheon Inner Port?

Twenty years have passed since IFEZ was launched. As we enter maturity, investment demand is increasing, but available land is in short supply.

For a specialized bio hub complex to be constructed within IFEZ, like Songdo, additional land must be made accessible.

Currently, IFEZ’s development rate exceeds 90%. There is a lack of space to attract the four major high-tech industries that Incheon pursues.

In many cases, other countries and their competitive cities have available land and rival clusters. IFEZ must also be able to compete in high-tech industries, future mobility, cultural tourism, green bio, and smart cities. To achieve this, additional FEZ designation is essential.

Q. A red light has been turned on for large-scale projects that have stalled, including the Golden Terra City (formerly Midan City) casino project. How are you going to solve it?

I am aware of the concerns shared by the residents of Incheon. We are focusing our efforts on getting things back to normal.

Last March, the Ministry of Culture, Tourism and Sports did not extend the casino project development period applied for by RFKR, the Korean subsidiary of China’s Furi Group, the operator of the Midan City complex resort.

We will seek to develop alternatives to meet the expectations of residents.

In addition, the ‘Icore City Project’, which involves constructing landmark buildings in Zones 6 and 8 of Songdo and has been in consideration for 17 years since announced in 2006, has seen repeated delays. These delays have been due to financial crises, changes in local governments, and the ups and downs of the global economy.

We are currently discussing options and plans to resolve, for example, the height restriction issue with the relevant ministries.

Q. Inaugurated as the 8th Commissioner of IFEZ last February, what activities have you undertaken since taking office, and what kind of organization are you aiming to create in the future?

First, for over a month since taking office, I have spent my time reviewing major work in progress, and visiting the central Incheon City ministries, business sites, and related organizations. I have dedicated considerable time to communicating with shareholders to understand the current business issues better.

Internally, we are promoting the establishment of the ‘IFEZ Vision and Strategy 2040 Project’ that will drive future leaps forward.

We will, too, strive to create a productive and happy IFEZ organizational culture.

In the future, the goal is to make IFEZ a world-class global city that surpasses Dubai and Hong Kong. To this end, we will do our best to attract corporate investment, for example, by conducting ‘visiting investment IR’.

In addition, we will increase the city’s competitiveness so that IFEZ becomes a top free economic zone, creates good jobs, revitalizes the local economy, and serves as a model for a new growth engine for our country.

A Brief Bio, Dr. Wonsok Yun

Born in Chungcheongnam-do in 1960.

Graduated from Sungkyunkwan University, English Language and Literature, a Master’s degree from Seoul National University Graduate School, and a Doctor of Business Administration, from Sungkyunkwan University Graduate School.

Director of Economic and Trade Cooperation Division, Korea Trade-Investment Promotion Agency (KOTRA)

CEO, International Business, Hangul and Computer Group

Chairman of Global Industrial Competitiveness Forum

This article was originally published in the Korean language in the June issue of Leader’s Money Today, a legislative affairs magazine. Sang-gu Yoon, head of Incheon headquarters, Reporter Se-mi Hong.

The article has been translated and edited by Don Southerton. Dsoutherton@bridgingculture.com

Mannes School of Music to Join Incheon Global Campus

June 3, 2024 Don Southerton Global Business Comments Off

Men holding papers in their hands Description automatically generated

Mayor Yoo Jeong-bok of Incheon Metropolitan City with Richard Kessler, Dean of Mannes Schools of Music ( Photo: BusinessKorea)

Incheon Metropolitan City Signs MOU with Mannes Schools of Music

The Incheon Free Economic Zone Authority (IFEZ) has announced that Mayor Yoo Jeong-bok signed a memorandum of understanding (MOU) with Mannes Schools of Music for the establishment of an “Expanded Campus.”

At the signing ceremony, Mayor Yoo was accompanied by Linda E. Rappaport, Chair of the Board of Trustees of The New School, the parent institution of Mannes School of Music, and Richard Kessler, Dean of Mannes School of Music. Also in attendance from South Korea was Dr. Yoon Won-seok, Commissioner of the Incheon Free Economic Zone Authority, and home of the Songdo District’s Incheon Global Campus (IGC).

The Mannes School of Music is one of the top music schools in America and is affiliated with The New School in New York. It was founded in 1916 by David Mannes (1866–1969), a renowned violinist, conductor, and one of the most important music educators in the United States. Alongside Mannes, the New School programs include the Parsons School of Design, which is the world’s top-ranked fashion university.

An Expanded Campus

Plans are underway for the Mannes School of Music to join the five foreign universities already located within Songdo’s Incheon Global Campus (IGC), which includes the State University of New York’s Fashion Institute of Technology. This will expand the appeal of the IGC and establish a hub for cultural and arts education in the area.

Commenting on this vision, BusinessKorea reports Mayor Yoo Jeong-bok expressed his hopes, noting, “The establishment of Mannes School of Music in Incheon is expected not only to foster talent but also to contribute to Incheon’s growth as an international city in the cultural sector.” The Mayor added, “We look forward to collaborations between our city, IFEZ, and the Mannes School of Music, and we will actively support the expedited establishment of the campus.”

Mayor Yoo Jeong-bok of Incheon Metropolitan City with Richard Kessler, Dean of Mannes Schools of Music ( Photo: BusinessKorea)

Source https://www.businesskorea.co.kr/news/articleView.html?idxno=218101

Edited by Don Southerton

https://www.bridgingculture.com

https://www.songdoibdcitytalk.com

Global FDI Business Trends

May 29, 2024 Don Southerton Global Business Comments Off

I am delighted to share my latest work, which explores global business trends and is featured as a Special Edition in the Incheon Free Economic Zone (IFEZ) Journal.

Along with my Special Edition article, I provided both the translation of the Journal into English and the editorial review.

It was an honor to be asked to share my insights, cultural understanding, and experience with Korea’s leading Free Economic Zone and the City of Incheon.

I’ve been asked how I support businesses… the short answer is I bring solutions to Korean global business, and global firms working with Korea.

I also seek exciting opportunities and challenges. If you encounter a deadlock, stalled work, or a potential issue that needs resolution, let’s discuss it.

Please enjoy the article. Don Southerton

Are you interested in learning more about IFEZ and the opportunities?

Here is the link to the full edition.

https://www.ifez.go.kr/synap/skin/doc.html?fn=85179a3f_af7d_428b_a799_bb33a401f78d.pdf&rs=/synap/85179a3f_af7d_428b_a799_bb33a401f78d.pdf

For more information….dsoutherton@bridgingculture.com

Songdo and Bioclusters are Standouts

May 27, 2024 Don Southerton Global Business, Songdo IBD in the News Comments Off

Branding in Asia / Image by Edward Jenner

Hubs offers R&D and Manufacturing resources, expertise, and talent.

Always great to see media picking up. The topic centers on Foreign Direct Investment, which I craft content on Songdo, South Korea.

I’ve been asked how I support businesses… the short answer is I bring solutions to Korean global business, as well as, global firms working with Korea.

I, too, look for exciting opportunities, and challenges, so here if you have an impasse, stalled work, or a potential issue that needs to be resolved.

All said, here is this week’s look at global business with a Korean twist–as seen in Branding in Asia.

Globally biopharmaceutical companies look to advance the development of a molecule from the laboratory to the clinic and then the market as soon as possible. This must unfold without sacrificing product quality, process efficiency, or patient safety.

To achieve this goal, companies must navigate the complexities of business planning, cell line development, process development, technology, and regulatory and risk assessment. This takes the right mix of resources, expertise, and talent.

In this context, APAC nations South Korea and Singapore are standouts. Specifically, their biopharma hubs aim to provide essential research and development activities in the biopharmaceutical industry.

In many cases, this may be a biopharma scale-up lab with separate areas for cell-line development, media screening, clone selection, upstream and downstream process development, and small-scale production for 200L pre-clinical studies.

The hubs also include large-scale manufacturing facilities and the ability to provide end-to-end biopharmaceutical manufacturing services. This enables domestic and foreign companies to quickly enter the global biologics and biosimilars market while reducing the time it takes to bring their products to market.

Bioclusters offers world-class biopharmaceutical production capacity.

For example, as cited by Invest Korea industry-leading pharmaceutical companies like Saint-Gobain, Janssen Pharmaceutical, Celltrion, Samsung Biologics, Dong-a Socio Group, and Binex are all located in the Songdo Biocluster.

In turn, as noted by the Singapore Economic Development Board, pharmaceutical industry leaders like Pfizer, Novartis, MSD, Sanofi, AbbVie, and Amgen have established global manufacturing hubs in Singapore, where they develop a wide range of products.

Many are engaged in a range of services including Contract Manufacturing Organization (CMO) of biopharmaceuticals, or developing and producing biosimilars based on their proprietary technologies.

Contract Manufacturing Organization (CMO).

A contract manufacturing organization, or CMO, helps pharmaceutical and biotechnology companies manufacture innovative drug substances. Their offerings include commercial production, drug development, formal stability, formulation development, method development, pre-formulation, and registration batches.

The strength of these bioclusters, too, lies in their production capacity. The biopharmaceutical production capacity of Songdo is 560,000 liters going head-to-head with San Francisco (440,000 liters), Singapore (270,000 liters), and Ireland (230,000 liters).

Finally, as biopharmaceuticals are made from cell cultures, it is critical to import and export products before products deteriorate during the storage and transportation process.

This means there is a need for a nearby airport and port for transporting chilled goods and frozen logistics.

And we find again standouts–Korea with the Incheon International Airport and Singapore home to the Changi Airport—both with their state-of-the-art logistics.

Meanwhile, local government efforts are being made for Greenfield sites to create additional biocluster facilities.

What is a Greenfield?

The term greenfield refers to buildings constructed on undeveloped lands where there was no previous development– that was, literally, green. The word green is also synonymous with the word new, which alludes to new construction projects. These greenfield developments are generally made by multinational companies that begin a new venture from the ground up.

To conclude, it is expected that within the next decade, the clusters in Korea, Singapore, and APAC will double to meet the growing global demand. Additionally, local governments will provide new support and incentives for domestic and international partnerships.

Many thanks go to Branding in Asia

https://www.brandinginasia.com/apac-bioclusters-are-standouts-in-biopharma-innovation-and-synergy

Songdo, An Urban Business Community

May 22, 2024 Don Southerton Global Business Comments Off

Songdo International City

I have a long history supporting Songdo, an urban business community on the West Coast of South Kore

I recall an early visit to Incheon and what would be Songdo and looking out at acres of land reclaimed from the sea. Over time buildings, parks, and infrastructure soon emerged from the sand. The photo was a view from my Songdo office in 2018.

Stepping back some… the community, now called Songdo International City, was developed with Western amenities and covers roughly 1500 Acres complete with a Central Park, an international school, and a Jack Nichols-designed golf course–all within a short distance of the Incheon shipping port and the international airport.

It was also an early adopter of buildings with LEED certification, which provides a framework for healthy, highly efficient, and cost-saving green buildings. Plus, Songdo was seen as a frontrunner as a Smart City innovator. Today, it is one of 3 districts of the Incheon Free Economic Zone and home to the Incheon Global Campus.

Today, I am happy to continue to share and highlight Songdo

Question? Just ask. dsoutherton@bridgingculture.com

Cross-cultural Insights: Is it better to manage local operations locally?

April 27, 2024 Don Southerton Global Business Comments Off

Hyangwon–First building electrified in Korea. Photo BCW

Seeking the right balance between global oversight and striving for localization.

By Don Southerton

There has been an expectation that Korean and other APAC companies would strive to fully localize as they expand overseas business operations in markets like North and South America, the UK, and the EU. With COVID we saw a change from the past with an annual dispatching of teams from Asia-Pacific HQs to a more reduced and limited role for expatriates.

There is a strong argument that local operations are best managed locally with minimal day-to-day oversight from the company’s HQ expatriate team. The exceptions in many cases, are expatriates assigned in a “designated” support capacity often in tech support and engineering.

As a thought leader in global business trends, I suggest a potential shift in global governance.

A limited expatriate support role has been a long-term goal. It’s costly, and the acculturalization for any expat in a new market takes time and an openness to learn and adapt.

This said, one constant is change. What potentially might have been the plan to reduce oversight may be altered to strengthen expat engagement and input in day-to-day business decisions and management. This frankly has been a cycle I have witnessed over the years. The current mode of reduced engagement has been, too, rooted in COVID where new overseas assignments were all but eliminated.

There are justifications and reasonings for the increased local engagement. One possible option for effective communication with APAC HQs is to assign expatriates for daily direct communication during evening hours, considering the time and work hour differences.

Expatriates can provide valuable insights into the HQ strategy, particularly in clarifying recent mandates and initiatives for local management.

Moreover, there is a growing need for broader HQ fiscal oversight during the rapid shift to capital-intensive ventures such as mobility, which requires significant infrastructure investment.

I want to mention that many Western brands, too, have long contemplated the right balance between a centralized company business strategy versus one driven by localization.

Bottom line… In today’s rapidly changing global economy, it is vital to comprehend the intricacies of Korean and Asia Pacific business, including the hows and whys, and to engage with their teams.

Some suggestions:Korean Business: Challenges and Solutions 50 Workplace Hints, #2 Managing Expectations

For those in the West, it may be the first time working with a team from Korea. This opportunity requires an understanding of the new partner’s culture and expectations.

The assumption that local and expatriate teams can bridge cultural gaps through practical on–the–job experience might work with those few highly intuitive individuals with the exceptional ability to assimilate cultures.

What stands out in numerous studies, such as Forbes notes….https://www.forbes.com/sites/forbesbusinesscouncil/2023/09/12/from-local-to-global-multicultural-businesses-bridging-international-markets/?sh=252577521062)

Is a need for ongoing multicultural training, that can successfully impact people, especially those who need to quickly adapt to new or changing business culture and values, while fostering sensitivity and teamwork among all company members.

Finally, best practices have shown that a tiered service model with training, mentoring, and ongoing strategic support is the most effective approach for an organization. Leadership can greatly benefit from one-on-one coaching, too.

To conclude, to answer the question “Is it better to manage local operations locally?” International companies must seek the right balance between global oversight and striving for localization. This includes the best mix of an HQ team’s engagement in day-to-day oversight and decision-making while creating a level of direct communication to ensure expectations are addressed, especially aligning with global strategies and fiscal concerns.

And, above all get support, winging it rarely works….

Questions? Here to discuss your needs, too.

dsoutherton@bridgingculture.com

Best International Market Entry Practices

April 12, 2024 Don Southerton Global Business Comments Off

Expanding internationally offers numerous benefits such as access to new markets, customers, workforce, and improved reputation.

I am a strong advocate of global business, as it presents great opportunities. I am also deeply passionate about seeing brands succeed in overseas markets.

Expanding internationally offers numerous benefits such as access to new markets, customers, workforce, and improved reputation. As Wharton Magazine noted, “…expansion provides diversification and additional revenue, it also exposes one to different methods of doing business.”

Frankly, my experience is that global companies looking at market entry for Asia-Pacific countries like Korea, Singapore, the Philippines, or Vietnam, should recognize the potential upfront investment required to enter a new market. Best practices require a company to invest time and resources in “Discovery” and hire a qualified expert or firm to assist in the local mark

It is also common for local entrepreneurs to approach global brands with the hope of securing a memorandum of understanding (MOU) to bring a popular brand to their market. However, these entrepreneurs may not currently have the necessary resources and means to operate the brand. They intend to get the MOU, and then pitch the deal to local business partners.

Sadly, we’ve seen over the years even seasoned international companies realize too late that their well-intentioned partnership was less than qualified. The deal, then, stalled or ended.

Qualifying a local partner can be a challenge, as it requires deeper insights into the local market and identifying key players.

As a benchmark based on recent projects this cost is easily a minimum of US $20,000- $50,000 in international travel and legal fees to secure a partnership. There are, of course, additional costs after an agreement is signed.

There are methods to offset these development costs, which include joint ventures and licensing. Also, a best practice is to ensure you are working with a market entry firm that can

Effectively screen for highly qualified potential partners,
Secure high-level meetings with decision-makers and,
The target company has the required capital, resources, and experience to successfully operate the brand.

Going it alone

In contrast, I have seen firms entering overseas markets who prefer to take a different, more reserved approach and go it alone with their internal staffing. Sadly, the success rate for an international firm successfully entering a new overseas market is poor— or more costly than expected, even with the support of highly dedicated government agencies for local market entry.

To elaborate more, some businesses want to focus on finding a solid, committed overseas partner or client with little investment and need to pay upfront fees to engage a local expert in a market entry — all compensation is contingent upon first finding a potential partner. This rarely (code word–never!) works.

More to the point, a highly qualified market entry firm that has a track record of getting results will rarely shoulder the risk of funding the upfront development costs for a client. Instead, an experienced market entry firm will seek out businesses that expect success and are willing to compensate for the services.

Also, although a company going it alone may have websites, products, and company information (often in need of editing), they however lack what is commonly accepted content for meeting presentations with potential partners, including, but not limited to, a detailed localized, savvy Go to Market Plan—often a high content 20+ pages and a competitive market analysis. These expectations are not options.

And finally, for highly recognized U.S. or global brands, there is less of a barrier in setting up meetings because of the strong international desire for a top brand. For less-known brands entering an overseas market, there is considerably more effort. I most often have to rely on my credentials to begin a dialogue with a potential partner vs. the brand itself, which typically is little known outside Korea and East Asia.

All said I am a strong advocate of global business. I see a great opportunity and am passionate about seeing brands succeed overseas. However, as I have shared, this does require an upfront investment in time and resources, as well as securing local expertise. My advice, too, is to follow best practices for market entry.

Don southerton

Don Southerton provides strategy, consulting, and training to Korea-based global businesses. See https://www.bridgingculture.com

Incheon Global Campus’s New York State University and General Motors Sign MOU

April 4, 2024 Don Southerton Global Business, Songdo IBD in the News Comments Off

New York State University President Arthur Lee, GM Korea President Hector Vizarreal and GM R&D Corporation President Brian McMurray (Photo IFEZ)

The Incheon Free Economic Zone Authority Incheon Free Economic Zone(IFEZ) under Commissioner Dr. Peter Wonsok Yun has announced New York State University and General Motors (GM), both with operations within the Incheon Global Campus, have signed a business agreement to foster future talent

I’ve noted in previous posts how IFEZ specifically Songdo is home to a community of foreign and domestic academic institutions, companies, and NGOs.

See https://www.brandinginasia.com/foreign-direct-investment-rooted-in-international-commerce-but-an-evolving-ecosyst em/

See https://www.brandinginasia.com/smart-cities-a-tale-of-innovation-and-collaboration-in-south-korea/

As noted in Maeil Business Newspaper Co., Ltd. the NY State Univerity and GM signed the MOU on April 3, 2024. GM operates an R&D center within IFEZ.

Attending the signing ceremony were Arthur Lee, president of New York State University, Hector Vizarreal, president of GM Korea, and Brian McMurray, president of GM R&D.

On this day, the two sides agreed to join forces to provide various educational programs for the growth of students at New York State University in Korea, including mentoring, seminars, and internships, to plan and promote job training and joint research and development (R&D) for GM employees, to visit both institutions and to contribute to the local community.

“We are happy that our students, who have strengths in engineering and management, will have the opportunity to strengthen the capabilities needed in global companies and grow into future talents,” President Lee said. “We will contribute to student growth and community development by promoting various programs with GM.”

President Vizarreal said, “STEM (Science, Technology, Engineering, Mathematics) education is an indispensable keyword in GM that leads future mobility,” adding, “I am happy to have an opportunity to cooperate with New York State University in Korea, which has strengths.” He said, “We will discover more innovative and creative programs and support fostering talents who will lead the rapidly changing future industry.”

“We are happy to have various collaborations with potential students and excellent faculty at New York State University in Korea through this partnership,” said McMurray.

“The high student recruitment rate (of IGC resident universities) means that IGC meets the purpose of creating new growth engines and creating a global education hub,” said Yoon Won-seok, head of the Incheon Economic Office.

New York State University Korea, which opened in 2012, is the first U.S. university in Korea with undergraduate and master’s, and doctoral courses. It operates an excellent department at Stony Brook University, which has the best science and engineering education programs in North America, and Fashion Technology University (FIT), the world’s top fashion school. All classes are the same as the faculty at New York State University in Korea through this partnership,” said McMurray.

Questions on IFEZ? Songdo? Korea? FDI?

Just ask dsoutherton@bridgingculture.com

Foreign Direct Investment an Evolving Ecosystem

April 4, 2024 Don Southerton Global Business Comments Off

By Don Southerton

I’m reposting my recent article in Branding in Asia.

Currently, FDIs in many markets are experiencing a global decline in funding. So, what are the best approaches markets should take for FDI 2024?

Foreign direct investment has become a cornerstone for governments and corporations looking to stimulate and sustain business growth. Foreign direct investment plays an important role on a macroeconomic and microeconomic level. We define foreign direct investment (FDI) as investment made by a company in one country into another country’s business or assets. FDI is a crucial aspect of international commerce, but it is also an evolving ecosystem that continues to change and develop over time.

Some key benefits of foreign direct investment include:

Economic Growth: Countries receiving foreign direct investment often experience higher economic growth by opening up to new markets, as seen in many emerging econom

Job Creation: Most foreign direct investment is designed to create new businesses in the host country, which usually translates to job creation and higher wages.

Technology: Foreign direct investment often introduces innovative technologies and creates hubs for technical expertise.

Stepping back between 2000 and 2008, the world saw an early growth phase in FDI. This was the peak time for global investment in FDI.

An Asia-Pacific (APAC) standout was South Korea’s Songdo International Business District (Songdo IBD). The project was a Joint Venture project I was engaged as a consultant and have continued to follow. Like other FDI of the period in the region, the 1997 Financial Crisis brought to the forefront the need for the APAC nations impacted to broaden their economies beyond domestic export-driven businesses

Economists recommended attracting foreign direct investments as a buffer against the potential impact of recessions and fiscal crises.

The Songdo vision in the early 2000s was to build an international business-friendly hub on the West coast of South Korea. The community with Western amenities was built on reclaimed land and covered roughly 1500 Acres complete with a Central Park, an international school, and a Jack Nichols-designed golf course–all within a short distance of the Incheon shipping port and international airport.

Over the years, Songdo IBD, now Songdo International City, has broadened beyond FDI to include residential, domestic companies, and NGOs. As part of the Incheon Free Economic Zone (IFEZ) which was created in 2003 and designated as Korea’s first free economic zone, today Songdo is one of three districts—along with Cheongna, and the airport’s Yeongjong International City.

Currently, FDIs in many markets are experiencing a global decline in funding. So, what are the best approaches markets should take for FDI 2024?

Over the years, the approach to international foreign direct investment (FDI) has evolved from a model solely focused on incentivizing foreign businesses to a more collaborative, synergistic, and dynamic ecosystem. This is observed in countries such as South Korea, Singapore, Vietnam, and Indonesia, as well as Ireland, the Netherlands, Latin America, and the Caribbean.

And, as noted by the World Bank, an exception to the downturn can be found in Greenfields–projects that require developing a new product or service from the ground up. Data shows this is the top area of FDI growth.

In turn, APAC markets like South Korea, Vietnam, and Singapore seek to position themselves as global hubs. Specifically for future industries such as bio-healthcare, smart manufacturing, high-tech finance and future robots, information and communication (IT), and artificial intelligence (AI) while making great strides in distribution, logistics, tourism, and MICE.

One takeaway does stand out—FDI is an evolving ecosystem that continues to change and develop over time.

https://www.brandinginasia.com/foreign-direct-investment-rooted-in-international-commerce-but-an-evolving-ecosystem

South Korea’s Songdo leading the way in bio-pharma

March 28, 2024 Don Southerton Global Business Comments Off

A sector near Samsung Biologics’ Bio Campus 1 within the Songdo Bio Cluster in Incheon (IFEZ)

South Korea’s Songdo is leading the way in bio-pharma…The Korea Herald notes…” Songdo Bio Cluster in Incheon, where the biopharmaceutical production capacity has reached 1.2 million liters, the world’s largest followed by Massachusetts, San Francisco and Singapore, according to officials from the

South Korea’s growing biopharmaceutical production capacity is increasingly making the country an attractive investment destination for global life science companies, industry sources said Thursday.

Songdo has successfully created an ecosystem for the bio-industry over the past few years, and it is now home to numerous international bio companies, with Korean biopharmaceutical giant Samsung Biologics being the key driving factor.

Full article Korea’s CMO ramp-up lures biotech investors

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Smart City, Songdo International City and the Incheon Free Economic Zone (IFEZ).

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