Pan-East Sea Hub for Tourism, Green Materials & Logistics
The Gangwon Free Economic Zone (EFEZ), officially designated in 2013, is being developed as a strategic gateway along Korea’s East Coast. With development scheduled through 2024, EFEZ’s vision is to become a Pan-East Sea hub for tourism, advanced materials, energy, and logistics, leveraging both Gangwon-do’s natural resources and its strategic location near Japan, China, and Russia.
Core Development Clusters
EFEZ is built around three main industrial clusters:
- Tourism and International Resort City
The centerpiece is the Mangsang International Multifunctional Tour City in Donghae. Covering nearly 3.8 km², it is designed as a global resort destination, combining luxury accommodation, international schools, residential zones, and leisure facilities. This district positions EFEZ as a four-season tourism hub, enhanced by the region’s maritime attractions and legacy of the Winter Olympics. - Advanced Materials and Parts Convergence
The Okgye District in Gangneung (0.38 km²) is focused on high-tech materials, non-ferrous metals, and advanced components manufacturing. Supported by R&D centers and industrial organizations, this zone is set to become a base for next-generation materials industries essential for electronics, mobility, and green technologies. - Hydrogen Energy and Logistics
The Bukpyeong District is being developed into a clean energy hub, specializing in hydrogen technologies such as power-to-gas (P2G) projects, hydrogen storage and transport, and liquid hydrogen demonstration clusters. At the same time, EFEZ leverages its ports, highways, and railways to establish a logistics and distribution hub serving Northeast Asia.
Investment Incentives
EFEZ offers an attractive package of benefits to encourage foreign and domestic investment:
- Tax Benefits:
- Full exemption of customs duties on imported capital goods for up to five years.
- Local taxes such as acquisition and property taxes are waived for five years, followed by a 50% reduction for an additional two years, across eligible industries including manufacturing, tourism, logistics, medical institutions, and R&D.
- Land and Property Support:
- Long-term leases of national or public land are available at reduced rates.
- Rent reductions range from 50% to 100% depending on investment size, employment levels, and export ratios.
- Investors may also purchase public land at construction cost via private contracts.
- Eligible foreign companies (≥ 30% foreign ownership) in high-tech or R&D sectors may receive cash support covering 30–40% of their investment.
- Government subsidies can cover 50% of infrastructure costs—such as roads, water supply, ports, and waste systems—and in some cases up to 100%.
- Simplified labor regulations, partial exemptions from employment quotas, and flexibility in foreign exchange transactions.
- One-stop administrative services and multilingual document support to streamline business operations.
- Cash Grants and Infrastructure Support:
- Regulatory and Administrative Ease:
Strategic Advantages
EFEZ benefits from Gangwon’s unique assets: abundant mineral resources for materials industries, clean coastal and mountain environments for tourism, and direct access to Northeast Asia’s key maritime routes. This makes it particularly well-positioned to support growth in clean energy, global logistics, and high-tech manufacturing while attracting international visitors and residents.
Sources:
https://www.fez.go.kr/portal/en/efez.do
https://www.gn.go.kr/eng/sub03_03_02.do