Gov't to double support for free economic zones

By Lee Joon-seung
SEOUL, Feb. 17 (Yonhap) -- The government will nearly double its support for
infrastructure projects within the country's special economic zones to fuel
development and create more jobs, officials said Tuesday.
The plan calls for 231.6 billion won (US$160.4 million) to be spent this year on
various projects, an increase of 92 percent from the 120.7 billion won used in
2008, the Ministry of Knowledge Economy said.
The money will be injected into 13 new undertakings in the Incheon, Busan,
Gwangyang and Daegu-North Gyeongsang Province free economic zones (FEZ).
The number of infrastructure projects that will receive support this year marks a
210 percent gain from the annual average of 4.2 that benefited from state funds
from 2004 through 2008.
The ministry in charge of the country's industrial and trade promotion policies
said most of the funds will go into building roads and other basic facilities
needed to attract investment.
It added that 70 percent of the money will be used in the first half so more
workers can be hired in the face of a sharp downturn in the local labor market.
In January, the government said roughly 100,000 jobs were lost compared to the
year before, with the total likely to increase to 200,000 by year's end. The
overall economy is also expected to contract by 2 percent on-year as the global
economic slump is expected to hurt exports, business investment and domestic
consumption.
South Korea started setting up FEZs in 2003 with the aim of creating special
business hubs in Northeast Asia and fueling economic growth.
Seoul has since offered various benefits including tax breaks, waivers on import
duties, and state support for the building of plants and logistics bases.
yonngong@yna.co.kr
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