The Gyeonggi Free Economic Zone (GGFEZ), located at the heart of South Korea’s West Coast Economic Belt, is one of the country’s newest free zones, designed to foster innovation-driven industries and attract global investment. With its strategic position near the Port of Pyeongtaek and proximity to Seoul, GGFEZ is poised to become a center of advanced technology, smart logistics, and sustainable growth.
Specialized Districts and Key Activities
GGFEZ is composed of three distinct districts, each dedicated to future-oriented industries:
- Poseung (BIX) District, Pyeongtaek – This district is being developed as an eco-friendly future mobility cluster, focusing on advanced manufacturing and next-generation mobility technologies. It provides opportunities for companies working in electric vehicles, green energy applications, and innovative mobility solutions.
- Hyeondeok District, Pyeongtaek – Positioned as a hub for the hydrogen economy and smart logistics, this area is also envisioned as an international settlement zone. It combines industrial opportunities with residential and cultural amenities, creating an environment where businesses and communities can thrive side by side.
- Siheung Baegot District – Serving as the center for unmanned vehicle R&D across land, sea, and air, Baegot is also emerging as a medical and biotechnology base. The district integrates high-value research with applied technologies, enabling partnerships between tech innovators and bio-medical enterprises.
Investment Benefits
As part of South Korea’s Free Economic Zone system, GGFEZ offers investors a wide range of incentives and benefits:
- Tax and Customs Advantages – Eligible foreign-invested companies can receive tariff exemptions on imported capital goods and enjoy reductions in national and local taxes, such as acquisition and property taxes, for a defined period. These benefits reduce the initial cost burden and enhance competitiveness.
- Regulatory Deregulation – Companies in GGFEZ benefit from streamlined regulations, making it easier to establish and operate businesses. Simplified customs clearance, business approvals, and flexible labor regulations support smoother operations for foreign investors.
- Land and Infrastructure Support – Businesses can access favorable land lease terms, with long-term leasing options and reduced rent rates for qualifying investments. The government also invests in core infrastructure—such as roads, utilities, and logistics facilities—ensuring that companies have access to world-class industrial conditions.
- Living and Administrative Support – Beyond industrial benefits, GGFEZ emphasizes its international settlement environment. The zone supports the establishment of foreign educational institutions, medical facilities, and residential complexes to enhance the quality of life for expatriates. At the same time, investors can access one-stop administrative services, from licensing to business consulting, easing the process of entering the Korean market.
Sources:
https://www.ggfez.go.kr/eng
Last update:
9th October. 2025