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Special Economic Zones
KDI School
2016. 12.
List of Chapters


Chapter 1


Chapter 2

Analysis on the Status of Korean SEZs, Success Factors and Shortcomings

1. Current Status of Korean SEZs

1.1. Categorization of Korean SEZs

1.2. Current Status of Korean SEZs

2. Lessons learned from Korean SEZs

2.1. Success Factors of Korean SEZ Policies

2.2. Drawbacks of Korean SEZ Policies

Chapter 3

Policy Implications (SEZ Operation Manual)

1. Preconditions for Successful SEZ Implementation

1.1. Consistent & Transparent Legal Framework and Strong Central Governmental Support

1.2. Creating Attractive Investment Environment: Making SEZs truly “Special”

1.3. Delicate Planning, Visualization, Execution

1.4. Sustainable Supplement of Worker’s Education and High Quality Manpower Framework

1.5. Continuous Skill Acquisition, Innovate, Industry Upgrade

1.6. Strategic Positioning and Strong Connectivity

1.7. Connectivity to Domestic Companies

1.8. Harmonious Economic and Social Development

1.9. Monitoring, Evaluation and Exit System

2. Policies for Successful SEZ Development

2.1. The Select Procedure for the SEZ

2.2. Installing a SEZ Committee and SEZ Planning Office

2.3. Centrally Integrated Control Mechanism for SEZ Development

2.4. Creating Attractive Business Environments in SEZs

2.5. Deregulation

2.6. The FDI Promotion System

2.7. Financing

2.8. Selective Development and Consistent Evaluation

Chapter 4



  This report seeks to serve as a handbook by providing a model for the implementation of special economic zones (SEZs) in developing countries hoping to introduce this policy measure as an instrument of economic development. The fundamental framework of the SEZ model will be based on the Korean experience. Specifically, our report utilizes the success of the Masan Export Processing Zone (Masan Free Trade Zone), one of the most successful foreign trade zones designated in the early 1970s, along with various observations collected from SEZ management in the 21st century, to formulate a model for successful SEZ development.

  In this research, Korean SEZ policies are analyzed in detail. The SEZs in Korea are categorized into 8 types: ① Free Trade Zone, ② Free Economic Zone, ③ Foreign Investment Zone, ④ Saemangeum Special Zone, ⑤ Enterprise City, ⑥ R&D Special Zone, ⑦ International Science Business Belt, and ⑧ Special Economic Zone for Regional Development. We examine the Korean experience in regard to SEZs’ status, factors of success with certain SEZ policies, and the drawbacks of SEZ policies.

  In Chapter 3, “Policy Implications (SEZ Operation Manual)” we first describe some challenges related to the development of SEZs that developing countries are mostly facing, and then suggest preconditions for successful SEZ implementation. And finally, major policy implications for successful SEZ development are detailed in our conclusion.


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