Korea’s AI-Converged Future Hub:
Since its design in 2020, the Gwangju Free Economic Zone (GJFEZ) has positioned itself as a cutting-edge center for innovation in South Korea — especially in eco-friendly automotive, smart energy, AI convergence, and high-tech parts & materials. Located in the Gwangju metropolitan area, GJFEZ is meant to be a model for future industries, blending R&D, production, and human talent in a purpose-built environment.
The Gwangju Free Economic Zone (GJFEZ) is divided into three specialized industrial districts, each designed to support distinct but complementary industries. The Future Automotive Industry District, spanning approximately 1.845 km² in Samgeo-dong, Gwangsan-gu, focuses on eco-friendly automotive production, autonomous and future mobility technologies, and the development of high-tech automobile parts and materials. It also integrates digital information, home appliances, and related R&D activities.
The Smart Energy Industrial Districts I and II, together covering about 0.932 km² and 0.486 km² in Nam-gu (Seokjeong, Jiseok, Apchon, and Daeji-dong), concentrate on energy ICT convergence, smart grid technologies, energy efficiency industries, and smart energy-related R&D, including equipment and infrastructure services.
Finally, the AI Convergence District, measuring about 1.111 km² in Oryong-dong, Buk-gu, is dedicated to artificial intelligence R&D and convergence. It supports an AI-based industrial complex that encompasses biomedical technology, knowledge-industry centers, AI start-ups, and supporting infrastructure such as data centers.
Investment Incentives & Benefits
GJFEZ offers a number of incentives aimed especially at foreign-invested or large/high value added projects. Key benefits include:
- Special Supports for Foreign-Invested Companies: Companies with at least 30% foreign investment are eligible for special supports, including cash rewards. These cover factory facility purchase or establishment costs, research equipment, employment subsidies, education and training, etc.
- Support for High Value-Added, High-Tech Investment: Incentives are stronger for firms introducing or expanding high-value added parts & materials, high-tech factory facilities or original technologies.
- Large-scale Investment Support: Special consideration is given to companies making large investments, recruiting many employees, or setting up significant R&D/training facilities.
- Support for Local Investment and Job Creation: Subsidies for investment attraction generally, including those that promote local employment, industrial support services, and infrastructure investment.
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Strategic Advantages & Ecosystem
Beyond direct incentives, GJFEZ offers several advantages that help investors beyond mere financial subsidies:
- “Gwangju-type Jobs” model: This refers to an industrial model that emphasizes labor-management cooperation, aiming to combine productivity with good working conditions.
- AI and Data Infrastructure: The zone has prioritized AI, including infrastructure such as AI Data Centers, knowledge-industry centers, and supporting the ecosystem around AI start-ups.
- Eco-friendly Automotive Cluster: With green mobility, environmentally friendly vehicle part suppliers, there is both policy alignment and industrial momentum in Gwangju.
- Smart Energy Convergence: Integration with energy ICT, smart grid, energy efficiency systems, etc., aligned with national energy transition goals.
Source:
https://www.gjfez.go.kr/eng
https://www.fez.go.kr/portal/en/gjfez.do