Korea to revamp free trade zones with land sales

A panoramic view of Masan Free Trade Zone. (Yonhap)

The South Korean government is working towards allowing residents of free trade zones to buy land there, moving away from the current lease model as part of efforts to revitalize the zones.

Maeil Business Newspaper learned Thursday that the Ministry of Economy and Finance and the Ministry of Trade, Industry and Energy are considering a plan to allow land sales in all 13 free trade zones nationwide. The finance ministry recently submitted a “Comprehensive State Property Plan” detailing the proposal to the National Assembly.

“It has been more than 50 years since the free trade zones were designated, and while there is strong demand for new factory construction and expansion, the lack of land ownership has been a stumbling block for businesses,” a government official said.

Facing criticism that the free trade zones are not fulfilling their original purpose after five decades, the government aims to revitalize the zones as hubs for exports and employment by allowing resident companies, which are currently limited to leasing, to buy land within the zones.