ULSAN < invest Korea

According to Yonhap News,

ULSAN, Sep 30 (Yonhap) -- On Sep. 30, Ulsan city government submitted an application for the designation of the Ulsan Free Economic Zone (FEZ) to the Ministry of Trade, Industry and Energy (MOTIE). Ulsan's basic plan is to build the Ulsan Free Economic Zone as Northeast Asia's energy hub.

It envisions developing Ulsan as Northeast's biggest energy center by establishing five districts including Hydrogen Industry Hub, Elecdrogen Autovalley, R&D Business Valley, Energy Convergence District and Northeast Asian Oil and Gas District to attract businesses in hydrogen, nuclear decommissioning and energy trading industries.

Regarding the development strategies of the five districts, Hydrogen Industry Hub by taking advantage of Ulsan's excellent infrastructure will be established to demonstrate the feasibility of hydrogen energy, build a cluster of R&D facilities, establish a business-friendly regulation free area and construct a hydrogen city of the future. Elecdrogen Autovalley will be built into an environmentally-friendly auto parts cluster for research, production and utilization through the convergence of the hydrogen industry with other industries such as batteries and automobiles.

R&D Business Valley in link with UNIST (Ulsan National Institute of Science and Technology) and the area surrounding Ulsan train (KTX) station will be devoted to facilitating R&D and business supporting industries and to providing residential areas for entrepreneurs and researchers.

Energy Convergence District will foster the nuclear decommissioning industry targeting domestic and international clients by building a cluster concentrated with research centers, businesses and specialized educational institutions. Northeast Asian Oil and Gas District will grow into the energy logistics hub of Northeast Asia and the world by building petroleum and gas storage facilities. Having received the application for the designation of Ulsan FEZ, MOTIE will complete FEZ assessment by November, tentatively designate the FEZ by December and officially designate FEZ through consultation with related government agencies in the first half of 2020.

The designation of Ulsan FEZ as the nation's top special economic zone is expected to help create an ecosystem attracting leading research agencies and talents at home and abroad, to develop new industries, to further intensify Ulsan's key industries as well as strengthening the industrial competitiveness.

Ulsan estimated that the designation of Ulsan FEZ will bring a significant economic spillover effect including a total production of KRW 5.3964 trillion, an added value of KRW 1.7665 trillion and the creation of 35,089 jobs as of 2030. Before the application, Ulsan City has commissioned a study to the Ulsan Development Institute in October 2018 to formulate a plan for the development of Ulsan FEZ. A task force team consists of members of the Ulsan Development Institute, Ulsan Techno Park and the Ulsan Metropolitan City Corporation was also organized for the designation of Ulsan FEZ.

The results of working-level meetings, discussions with experts, field studies, preliminary consultations with MOTIE and feedbacks from citizens were also reflected in the Ulsan FEZ development plan.

The development plan was prepared by comprehensively reviewing and reflecting: MOTIE's 2nd FEZ establishment plan that is focused on new industries and on building the center for innovation and growth of the regional economy by revitalizing the manufacturing industry; satisfying the requirements for FEZ designation under the Special Act on Designation and Management of Free Economic Zones; strategy differentiated with those of other cities and provinces; direction for Ulsan's industrial strategy; connection among industries; and regions included in the development plan. "Several cities and provinces have applied for FEZ designation," said an official of Ulsan City. "In preparation of MOTIE's assessment, Ulsan will try its best to have its candidate region to be designated as a FEZ."

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Source: Yonhap News (sep 30, 2019)