On June 29, the Ministry of Trade, Industry and Energy held its 148th Economic Free Zone Committee meeting, where it reviewed and approved the results of the 2025 Economic Free Zone performance evaluation and amendments to the notification regarding the selection and procedures for core strategic industries. The ministry also reported on plans to reselect core strategic industries for economic free zones.
Economic free zones are designated areas aimed at attracting foreign investment and establishing new industrial hubs. Their importance has grown beyond mere development projects to include investment attraction, industrial clustering, innovation ecosystem building, and alignment with regional growth strategies.
The performance evaluation system assesses the achievements of each economic free zone annually to promote their development and revitalization. This year, the evaluation process was improved to enhance fairness and objectivity by strengthening quantitative assessments and reducing unnecessary paperwork, often referred to as 'fake work.'
The evaluation covered nine areas, including global hubs like Incheon, Busan-Jinhae, and Gwangyang Bay, as well as regional hubs such as Daegu-Gyeongbuk, Gyeonggi, Gangwon, Chungbuk, Gwangju, and Ulsan. The evaluation criteria consisted of three categories: management, business performance, and future ecosystem development.
As a result of the evaluation, the Incheon, Gwangju, and Chungbuk Economic Free Zone Authorities received an S grade, the highest rating. Authorities that achieved this top rating will benefit from investment attraction subsidies and recognition for outstanding contributors.
The Incheon Economic Free Zone Authority received the highest score among the nine economic free zones, excelling in foreign direct investment attraction and the establishment of a long-term strategic framework known as the 'IFEZ Vision and Strategy 2040.' Notable projects like the recovery and reinvestment of profits from the Midan City and Songdo Landmark City developments also contributed to its high score.
The Gwangju Economic Free Zone Authority was praised for its successful industrial clustering through the attraction of DH Group affiliates, DH Autowear and DH AutoEye. Efficient project budgeting and systematic personnel management were also highlighted as strengths.
The Chungbuk Economic Free Zone Authority stood out for its growth strategy leveraging key regional assets such as the Osong Bio Cluster, Ochang Advanced Industrial Complex, and Cheongju International Airport, achieving significant investment attraction results.
The evaluation results demonstrate the diverse growth strategies of each economic free zone. Incheon focuses on a model of global investment and urban development reinvestment, Gwangju emphasizes industrial clustering around future vehicles, while Chungbuk combines bio, advanced industries, and airport infrastructure in its growth strategy.
The government plans to reselect core strategic industries for economic free zones, considering industrial characteristics and location conditions. Each zone will specialize in three to four industry groups and over 60 detailed industries. The government has finalized a plan outlining the procedures and schedule for reselecting core strategic industries, addressing institutional shortcomings such as designating specialized evaluation agencies through notification amendments.
The Ministry will conduct a demand survey by August, followed by selection evaluations in September, notification of results and requests for improvements in October, and consultations with relevant ministries in November, leading to a review by the Economic Free Zone Committee in December.
Je Kyung-hee, head of the Ministry's Economic Free Zone Planning Division, stated, "We will actively share successful cases to promote balanced growth of economic free zones through competition among regions, and we plan to establish core strategic industries to revitalize economic free zones centered around the five major regions and three special areas."
* This article has been translated by AI.
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