Benefits for logistics industry

To promote value-added services in the logistics industry, tax and financial support will be broadened to include transportation and storage, said the MOCT (Ministry of Construction and Transportation). Also, the Port of Pusan, Port of Kwangyang, and Inchon International Airport will be designated as CFZs (Customs Free Zone) from next year.

An economic ministers' meeting consisting of MOCIE (Ministry Of Commerce, Industry and Energy), MOCT, and MOMAF (Ministry Of Maritime Affairs and Fisheries) confirmed the logistic development plan on November 27.

According to the plan, the logistic industry including freight, storage and cargo terminal operations, will receive a 5% tax exemption from investments on automation and information processes by the end of next year.

Storage and transportation companies with less than 200 employees and 20 billion won in capital, categorized as small to medium enterprises, will benefit from government assistance. Automated and standardized logistic businesses will also be able to apply for tax-free assistance.

380,000 pyoung in the Port of Pusan and 420,000 pyoung in the Port of Kwangyang will be designated as CFZs from next year. 300,000 pyoung in Inchon International Airport will start as a CFZ from 2005. (CFZ designation enables high value-added logistic products such as assembly and processing in these areas.)

To help foreign companies hoping to enter Asian markets, the government will establish a new organization, KILC (Korea International Logistic Center).

An in-land transportation network for the center of Korea's five regional sectors is also under consideration.