The MFTZ, according to the "special law" was extablished in January of 1970 to contribute to the national and local economy through attracting more foreign investment which focuses on export promotion and technical improvement.
With the establishment...
The MFTZ, according to the "special law" was extablished in January of 1970 to contribute to the national and local economy through attracting more foreign investment which focuses on export promotion and technical improvement.
With the establishment of the WTO system and free trade, the world economy is witnessing the integration of trade, investment, and banking system centered-around the multinational companies. And countries around the globe are making all efforts to attract foreign investment in order to make the best use of the movement of the multinational companies. Moreover, Korea's neighbors such as China, Taiwan, and Singapore as well as the advanced nations are introducing free trade zone system in a way to become a hub of the world economy in 21century. the function of free trade zone is expanding to include one of the complex urban community with international trade and logistics, banking and R&D, not to mention production.
MFTZ has enormous potential for the growth including the sound financial fundamental and technology but its growth has been limited due to the confined area and lack of systematic supports.
Since its birth 30 years ago, Masan Free Trade Zone greatly contributed to the Korean economy to become a strong trading country and also to the growth of local economy and foreign investment. The export, which was mere US $860,000 in 1971, recorded $4.4 billion in 2000 increasing 60% from the previous year. In addition, the trade balance marked $12.6 billion of surplus. In this regard, it is believed that the role of Free Trade Zone has become more important than ever.
Therefore we should find the improvement measures to tackle the current problems, to provide the systems and practices in line with the new global norms, to actively deal with the ever-changing economic trend and therefore to internationalize the Korean economy and enhance the national competitiveness.
To do so, first I suggest that should expand the area of free trade Zone in order to meet the increasing demands of both the existing and new companies.
Second, I suggest that should innovate the structural problems in the current industrial complex and establish the in vestment environment on the competitive edge.
Third, I suggest that should construct the systematic foundation of Free Trade Zone to which the international standards are applied through various tax incentives and deregulation.
Forth, I suggest that should put focus on fostering Free Trade Zone as a hub of production, trade, investment, and logistics making the best use of intermediate position between Japan and China in terms of geography and industrial development.