Knowledge-based Service Corridor

One of the most ambitious elements of the DGFEZ project is the Knowledge-based ServiceCorridor. The project is designed to create synergies between knowledge-based services andlocal manufacturing industries. It offers opportunities in the medical industry, software anddigital contents, as well as education.

- National High-tech Medical Complex is designedto provide Asia’s best facilities for the developmentof new drugs, medical devices and clinicaltesting. This complex will be over 1 million squaremeters in size and attract approximately $4.5 billionin public and private funding during the lifetime ofthe project. Korea’s largest cluster of private bio-tech companies and university hospitals operatesnearby, while electronics companies are conductingR&D to develop medical convergent devices andequipment.

- Culture Industry District offers opportunities indigital contents industry, gaming, softwaredevelopment, and multimedia broadcasting (IPTV).The Culture Industry District has already taken a bigfirst step in its development by securing the R&DCenter of Dassault Systemes, a world leader in 3Dand PLM, and Microsoft Korea.

- Gyeongsan R&BD District which lies in Korea’slargest college town and near to the High-TechMedical complex is seeking to attract foreigngraduate schools and R&D facilities related to RFID,LED and medical equipment.

- Fashion Design District (Esiapolis) is Korea’s firstfashion-themed district will host Korea’s leadingtextile and apparel manufacturers. In the districtthere is a fashion college, textile-related R&D center,and commercial facilities. For more information about DGFEZ, Please contact

+82-53-550-1913www.dgfez.net, twitter.com/DGFEZ

Target Districts

Daegu-Gyeongbuk Free Economic Zone

Daegu-GyeongbukFree Economic Zone

>> Daegu Technopolis

>> Yeongcheon Industry District

▶Purpose: Logistics / Manufacturing▶Industry: Auto, Shipbuilding, Wind Power

▶Project Period: 2008~2012

▶Key FeaturesComprehensive Bonded AreaGood Logistics (550m from IC)Close to Ulsan (70km), Pohang (64km)Lowest land cost in DGFEZ

▶Construction: Second Half of 2012

▶Purpose: R&D / Education / Manufacturing▶Industry: Green Energy, Auto, IT

▶Project Period: 2006~2013

▶Key FeaturesNational R&D Centers (ETRI, KIMM)Universities (DGIST, KNU, KMU, UD)ITS Automotive Test CenterProximity to Industrial complexes

▶ConstructionR&D Facilities (Available now)Manufacturing Centers (Available Q2 2011)

Gumi

ChangwonMasan

Pohang

Yeongcheon

Ulsan

Busan

DAEGU

YeongcheonIndustry District

Gyeongsangnam-do

Gyeongsangbuk-do

YeongcheonIndustry DistrictYeongcheonIndustry District

Gumi

ChangwonMasan

Pohang

Yeongcheon

Ulsan

Busan

DAEGU

Gyeongsangnam-do

Gyeongsangbuk-do

Daegu-GyeongbukFree Economic Zone

Daegu-Gyeongbuk Free Economic Zone - The Knowledge-based FEZ

The Daegu-Gyeongbuk Free Economic Zone (DGFEZ) is a special economic zone in South Koreathat offers an optimal business environment by providing financial incentives, relaxedregulations and customized facilities to global companies looking to satisfy their customer basein Korea and expand into Asia.The Daegu-Gyeongbuk Free Economic Zone (DGFEZ) integrates knowledge-based services andknowledge-based manufacturing to maximize synergies among industry, education, andresidential life. As part of its development plan to provide an attractve location for foreigninvestment, Daegu International School (a branch of the prestigious American private school,Lee Academy) opened in August, 2010. DGFEZ is enhancing its R&D capabilities through aSpecial R&D zone that includes Daegu branches of Electronics & Telecommunications ResearchInstitute (ETRI), Korea Institute of Industrial Technology (KITECH), and Korea Institute ofMachinery & Materials (KIMM).

In total, DGFEZ has 4 industrial corridors (IT Convergence, Transportation Components, GreenEnergy, Knowledge-based Service) located within five cities in Daegu-Gyeongbuk (Daegu, Gumi,Gyeongsan Yeongcheon, Pohang). Daegu-Gyeongbuk is an industrial center of Korea where13% of all domestic manufacturing occurs. Daegu-Gyeongbuk offers numerous opportunities,relying on 2 world class industrial clusters (IT and automotive), highly skilled human resources(51 local universities and colleges) and state of the art R&D centers. DGFEZ also boasts low costs(land and labor) and strong government support.

(intelligent vehicles) for over 700 auto partsmanufacturers operating in the vicinity. Also beingdeveloped in DGFEZ is a complex dedicated to theproduction of auto components, and bicycles.Within one hour of DGFEZ, auto companies HyundaiMotor Company, Renault Samsung and GM Daewoo,as well as shipbuilders Hyundai Heavy Industries,Samsung Heavy Industries and Daewoo Shipbuilding& Marine Engineering operate manufacturingfacilities. Accordingly many automotive andshipbuilding suppliers are found (43% of Korea’s total).

Green Energy Corridor

This corridor offers opportunities in solar PV, secondary batteries & fuel cells, and windpower. DGFEZ aims to nurture the green energy industry in the manufacture of new andrenewable energy and the commercialization of their technologies.

- Solar Energy: Daegu-Gyeongbuk is the only region in Korea capable of producing the entirevalue chain of solar PV and the city of Daegu has taken a leadership role in solar energy, and willalso host the World Energy Congress in 2013. Local companies (including LG Electronics) possessadvanced technology that has allowed them seamlessly transform production from LCDs tosolar cells.

- Fuel Cells (and Secondary Batteries): Due to its close proximity to Korea’s largest manufacturersof automotives, ships and mobile phones, Daegu-Gyeongbuk has received substantialinvestments from energy companies including POSCO, Exxon Mobil, Nippon Oil and GS Caltex toproduce fuels cells, secondary batteries and their components. These companies, as well as, worldrenowned universities (POSTECH) are leading the way to commercialize and advance applicationsfor fuel cells and secondary batteries.

- Wind Power: As part of Korea’s East Coast Energy cluster, an agglomeration of wind powercompanies, including Spanish company Acciona (operating a 42-turbine wind farm) are locatedalong the eastern coast of Daegu-Gyeongbuk. Leading shipbuilding companies have enteredthe wind power industry and they are collaborating with electronics companies to supply windturbines and high-tech components as this industry quickly expands.

Daegu-Gyeongbuk Free Economic Zone

DGFEZ Daegu-Gyeongbuk Free Economic Zone

IT Convergence Corridor

Samsung Electronics, LG Electronics and LG Display form the core of the world’s most intensiveIT and mobile communications cluster. More than 1,350 manufacturers operate in the cluster,employing over 81,000 persons and exporting the third-largest volume of IT-related products inthe world. This cluster conducts world-class research through PIRO (Pohang Intelligent RobotInstitute) and Gumi Mobile Convergence Center making the Daegu-Gyeongbuk region well-suited for nurturing IT-Convergence. With its strong infrastructure, Daegu-Gyeongbuk is apromising locale for innovative industries (intelligent robots and medical instruments) bypossessing key technologies in RFID (Radio Frequency Identification) and WSN (Wireless SensorNetwork), essential for realizing a ubiquitous society. Fire fighting robots, autonomousunderwater vehicles, and English teaching robots are undergoing the testing phase in Daegu-Gyeongbuk and these products will play a major role as the robot industry develops into one ofKorea’s new growth engines. The IT Convergence Corridor offers opportunities in the mobileindustry, robots, medical devices, and next generation display.

High-Tech Transportation Components Corridor

The High-tech Transportation & Components Corridor is located in the center of Korea’s “Autoand Shipbuilding Valley” where over half of domestic automobile production and a whopping78% of all shipbuilding manufacturing occurs.

Taking the lead as the industry shifts towards intelligent transportation systems, DGFEZ isconstructing Korea’s first public Intelligent Transport Systems (ITS) Automotive Test Center,which will include a 3.7km long test track. The test center will serve as an important test bed

▶IT Industry in Daegu-Gyeongbuk

Category Companies Production(US$ million) Employees

IT Service 184 320.88 3,749

IT Devices 835 43,586.84 71,807

S/W 334 804.82 6,176

Total 1,353 44,712.54 81,732

Daegu

Yeongcheon

Pohang

Gyeongju

Ulsan

BusanChangwon

Auto Belt