Songdo International Business District, part of the Incheon Free Economic Zone. (image: IFEZ)
INCHEON, Jul. 15 (Korea Bizwire) — Foreign direct investment (FDI) in the Incheon Free Economic Zone (IFEZ) over the first two quarters this year has dropped to less than half of the value recorded last year.
The IFEZ Authority reported on Saturday that this year’s FDI reached US$164 million, which is only 33.4 percent of last year’s value.
There was only one new investment contract during this period, and no memorandums of understanding were signed, which are normally are the precursors to investment contracts.
The IFEZ Authority explained that abolishing various tax cuts for foreign investors in January and the overall slump in global FDI have impacted investment.
Other experts argue that the unexpected replacement of the head of the IFEZ Authority in May by Incheon Mayor Park Nam-choon caused an operational vacuum that undermined investment.
In the meantime, the Incheon Metropolitan Council is being criticized for amending relevant city ordinances to obligate the IFEZ to report to the council before introducing businesses and facilities to IFEZ.
M. H. Lee (mhlee@koreabizwire.com)
