South Korea's trade minister on Friday said the government will revamp its policy on free economic zones to attract more investors as the special areas have failed to offer enough incentives to attract local and foreign companies.

"FEZs played a role in leading South Korea's economic development to some extent, but their achievements have failed to meet our expectations," Trade Minister Joo Hyung-hwan said in a breakfast meeting with local experts and businessmen in Incheon, on the western outskirts of Seoul.


The country has designated eight FEZs across the country since 2003, including ones in Incheon and Busan, while a total of 2,189 companies did business there with 96,000 employees as of 2015.

But experts pointed out that the FEZs have not attracted as many foreign investors as hoped due to weaker-than-expected benefits and delayed development of facilities.

The eight FEZs received US$5.6 billion in foreign direct investment between 2004 and 2015, accounting for a mere 5 percent of the country's total FDI over the same period.

Joo said the government is working on measures to foster the FEZs to become the country's leading business areas by cutting red tape and giving more incentives to companies.

"The trade ministry will join close hands with other government agencies to help the FEZs steer the South Korean economy to further development," the minister said. (Yonhap)