The Korea Local Administration Review

The Free Economic Zones(FEZ) in Korea have been established in thepurpose of vitalizing the foreign direct investment and advance related Koreanindustries, like other nations. Nonetheless, there are not many empiricalevidences that those FEZs accommodate more foreign direct investment so far.On the other hand, other FEZs of competing nations such as China andHongKong show meaningful achievements. According to the survey conductedfor this study, ‘Deduction of rental fee’, ‘Employee skillfulness’, ‘Expertise inFEZ administration’, and ‘Living condition for foreigners’ are found to be themost important factors for satisfaction level of those who have madeinvestments in FEZs. In order to improve those conditions and to provide betterbusiness environment for foreign firms, deregulation and improvement ofbusiness environment are necessary. Thus, in that sense, mandate of power tothe respective provincial & local governments is required, and in the long-term,each provincial & local governments and FEZ authorities should be turned intospecial provincial & local administrative district which can continue the FEZprojects by its own.