Busan-Jinhae Free Zone Seeks New Sites as 98.7% of Area Already Developed

FTZ News: With 98.7 percent of its designated area developed, the Busan-Jinhae Free Economic Zone is looking to expand its industrial and logistics footprint.

The zone spans 50.28 square kilometers across 22 districts. Officials submitted a development plan in October for a 2.86-square-kilometer Tri-Port Global Complex Logistics District in Gangseo-gu. The site is meant to connect Busan New Port, the new Gadeokdo Airport and existing rail lines. It was selected as a national strategic project in February 2025. The authority intends to seek formal free-zone designation after consultations with the Ministry of Trade, Industry and Energy.

A separate feasibility study is under way for a 7.4-square-kilometer hinterland city on Geoje Island tied to the airport. That study is scheduled for completion in December. In Gimhae, a 29-square-kilometer international business city entered basic planning in July. Assessments of conditions and implementation options are set to continue in phases through July 2027.

Reported foreign direct investment reached $300 million through the end of September, 86.2 percent of it in advanced industries. Domestic investment totaled 158.2 billion won from 32 companies. Among the signed deals: Busan Cable & Engineering’s $39 million agreement for a third plant producing specialized industrial cables; a $38 million Korea-China joint venture for a logistics center in Ungdong; and a combined 300-billion-won package from Dongwon Global Terminal Busan and Young Chemical expected to create 148 jobs by 2029. Lotte Mart’s Zeta Smart Center opened in August and BGF Retail’s Busan Logistics Center in September.

Work is also advancing on the long-delayed Ungdong District 1 project. Detailed design for 1.02 kilometers of roads and roughly 176,000 square meters of green space was completed in June. Contracting and construction started in September, with completion targeted for September 2028. Plans for the remaining 538,000 square meters of project land remain under review.

Commissioner Park Seongho said the authority has focused on preparing space for industrial and logistics demand and on supporting companies through investment and settlement. He noted ongoing coordination with other agencies to address development projects delayed for years./.