Busan-Jinhae Free Economic Zone Authority Reorganizes 4 Core Strategic Industries for Future Growth

[Financial News] The Busan-Jinhae Free Economic Zone Authority is reorganizing its four core strategic industries to align with changes in the industrial environment and policy conditions. The existing core strategic industries—including integrated logistics, smart transportation equipment, advanced materials, parts and equipment, and bio-healthcare—are being restructured into advanced shipbuilding, shipping, and logistics; future mobility; next-generation energy; and AI and data convergence industries.
The Busan-Jinhae Free Economic Zone Authority announced on the 10th that it will submit an 'Application for Re-selection of 4 Key Strategic Industries' containing these details to the Ministry of Trade, Industry and Energy (MOTIE) on the 11th.
The core strategic industries of Free Economic Zones were selected following a study commissioned by the Ministry of Trade, Industry and Energy (MOTIE) in 2021 to drive innovative growth by strengthening the growth foundation of specialized industries based on regional characteristics and conditions and expanding support for companies investing in high-tech and core industries. As approximately five years have passed since then, there is a growing need for reorganization to align with changes in the industrial environment and policy conditions.

This reorganization was carried out after a comprehensive review of the changed industrial environment, government policies, the vision of the Busan-Jinhae Free Economic Zone Authority, and the performance of existing core strategic industries, as well as through the collection of opinions from Busan and South Gyeongsang Province, consultation with external experts, and deliberation by a selection review committee composed of internal and external experts. While preserving the strengths of existing industries and locations, such as Tri-Port-based complex logistics and shipbuilding equipment, the reorganization focused on sectors expected to grow in the future, such as Small Modular Reactors (SMRs), eco-friendly energy, and AI data centers, actively reflecting codes belonging to core industry groups.
The areas to watch are the next-generation energy industry and the AI and data convergence industry.
The next-generation energy industry has been newly included to intensively foster Small Modular Reactors (SMRs), eco-friendly energy, and related industries, leveraging the manufacturing capabilities of Busan and South Gyeongsang Province in machinery, materials, and components. Moving forward, the plan is to establish a next-generation energy industry ecosystem linked to the region's demand for eco-friendly transition, encompassing everything from attracting companies to technology development, demonstration, and commercialization.
The AI and data convergence industry was selected to support the integration of AI and data across core strategic industries and the promotion of digital innovation, by leveraging the achievements in attracting global data centers and the regional capabilities of advanced industries such as power semiconductors.
Park Seong-ho, head of the Busan-Jinhae Free Economic Zone Authority, stated, "This reorganization focused on inheriting the existing industrial strengths of the Busan-Jinhae Free Economic Zone while strategically establishing next-generation energy and AI/data convergence industries as new growth axes." He added, "We will build a future industrial ecosystem unique to the Busan-Jinhae Free Economic Zone by combining energy and digital innovation with logistics infrastructure centered on Busan New Port, Jinhae New Port, and Gadeok Island New Airport, as well as the manufacturing capabilities of Busan and South Gyeongsang Province."
Meanwhile, the proposed re-selection of core strategic industries submitted this time is scheduled to be finalized in December following review by the Ministry of Trade, Industry and Energy (MOTIE) and deliberation and resolution by the Free Economic Zone Committee.
[email protected] Kwon Byeong-seok Reporter