The East Sea (or Donghae) Free Economic Zone Authority, which will be responsible for the development of a newly designated FEZ, opened in Donghae City, Gangwon Province, on Wednesday.

The FEZ Authority set a bold vision to build four globally competitive districts, including an industrial cluster for material businesses, on the east coast by 2024.

Trade, Industry and Energy Vice Minister Kim Jae-hong, who joined the opening ceremony with officials from Gangwon Province, said, “I expect the East Sea FEZ to be differentiated from other FEZs in the course of development, by seeking to create value from a combination of industrial districts with Gangwon Province’s affluent natural resources.”

The East Sea FEZ is uniquely located in a region full of non-ferrous metal resources, which are used for making high-tech goods. Based on the ministry’s “selection” and “concentration” policy direction for FEZ development, the authority said it would develop a cluster for high-tech material businesses in Okgye, Gangneung City, as its first development project.

Then, it will gradually develop the other three districts by 2024, while improving conditions for international companies.

The zone is also close to Pyeongchang, the host city of the 2018 Winter Olympics, and thus expects more private-sector facility investments for international tourist conventions.

Despite the blueprint for development, however, industry watchers said the success of the East Sea FEZ largely depended on the speed of development of transport infrastructure.

“One of the biggest handicaps to attracting investment to the East Sea FEZ is its distance from Seoul and the surrounding area,” said an official from the FEZ Authority, urging the central government to improve the condition of roads, ports and airports as scheduled.

The prolonged slump in the property market is another key concern facing the authority as it is difficult to develop a business district without private developers.

Under the recent ministry’s FEZ restructuring plan, the East Sea FEZ has three years to make progress in its initial development. If the zone, which was designated in February this year, fails to find a developer and start development within that timeline, the government could revoke the designation.

By Seo Jee-yeon  (jyseo@heraldcorp.com)