A Study on the Operational Improvements of the Jeju Investment Promotion District

Abstract

This study aims to analyze the current situation and problems of the Jeju Investment Promotion District, which is the main means of Jeju Island development, and to seek for improvement plans for them in point of practical management. Since its introduction in 2002, the Jeju Investment Promotion District has been evaluated to have succeeded in attracting 7.6 trillion won in investment over 20 years, thanks to support such as unprecedented taxation. And it also exposed many problems such as abuse of tax benefits and land arbitrages. Past studies have mainly focused on improving the framework of the system to prevent these problems. This study looked for improvement plans by analyzing the current status of each region, investment amount, and industry in the investment promotion district and the types of business sectors of which designation has been lifted. Literature research method using literature data as that of local government, previous research papers and media contents was used. As a result of the study, there is relatively more investment in the west than the east, so it is necessary to induce more investment in the east in the future. The cancellation rate of designation of mega business sectors such as comprehensive recreation business was high, so it was necessary to reduce it through much more intensive management. In addition, there were many cases of Investment District Cancellation and land arbitrages, which included many comprehensive recreation business sectors. So it was necessary to prevent it through elaborate management.