The number of companies in South Korea’s free economic zones increased by 4.4% in 2024, leading to rises in employment and investment, as per the industry ministry. By the end of 2024, there were 8,590 companies in these zones, up from 8,228 the previous year. Employment at these firms rose by 8.8% to 254,775 people, while investment surged by 14.4% to around 5.9 trillion won (US$3.99 billion).
The free economic zone in Incheon held the highest share of tenant companies at 44.9%, followed by zones in Busan and Jinhae at 28.4%, and Daegu and North Gyeongsang Province at 12.2%. Foreign-invested companies numbered 690, marking an 8.2% increase from the previous year, with foreign direct investment growing by 4.3% to 3.8 trillion won.
A ministry official noted that free economic zones are growing steadily, serving as key hubs for foreign investment and regional economic progress. These zones offer relaxed regulations and incentives to attract foreign investment and promote advanced industries.
In 2025, South Korea saw a record high of over US$36 billion in foreign direct investment pledges, with actual investment reaching $17.95 billion, up 16.3% from the previous year. This growth was attributed to reduced political uncertainties and the APEC meeting in Gyeongju.
