The creation of the Incheon Free Economic Zone in 2003 raised a few eyebrows, but after 12 years it has become a benchmark model around the world.
According to IFEZ authorities, the development of the zone in Songdo, Incheon, has become an export item itself.
From the development project of the knowledge-based city in Yachay, Ecuador, to similar cities in Indonesia, Vietnam, Columbia and others, know-how on development and management of a “Ubiquitous City,” such as Songdo, has been exported to the tune of $9.7 million so far. Public officials of the U.S., Germany, Japan, Brazil, Taiwan, Qatar and many others have visited the city to learn about the U-City model, where the Internet is deeply involved in the city administration.
“The state-of-the-art information technology integrates and manages the nooks and crannies of Songdo around the clock. All cars that come and go in Songdo can be monitored and traffic lights are automatically manipulated according to the traffic volume information gathered,” an IFEZ official stated.
Foreign direct investment in the free economic zone marked $1.71 billion in 2014, far above market expectations. Incheon even ranked 43rd in the Economist Intelligent Unit’s Hot Spots 2025 Benchmarking the Future Competitiveness of Cities in 2013, up 17 steps from a year before.
Thanks to such success, the number of residents in Songdo has been increasing by 1,000 a month, and is expected to exceed 100,000 next year. About 3,054 business bodies are operating in the district as of 2013, up 761 from 2007.
About 870 business corporations including 57 foreign investment firms have nestled in the city, while the Northeast Asia Trade Tower and 13 international organizations including the World Bank are located inside the U-City.
“There are seven hotels and a Central Park for the citizens to take a break from their urban lifestyle has also been established to make the best of the city,” the IFEZ official stated.
By Bae Ji-sook (baejisook@heraldcorp.com)
