Songdo's specs are staggering: 50 million sq. ft. (4.6 million sq. m.) of office space, 30 million sq. ft. (2.8 million sq. m.) of residential, 10 million sq. ft. (930,000 sq. m.) of retail, five million sq. ft. (464.500 sq. m.) of hotel and 10 million sq. ft. of public space.

What is IFEZ? T he Incheon Free Economic Zone (IFEZ), designated as Korea's first FEZ in 2003, is transforming 51,739 acres (20,939 hectares) into a globally competitive business and living environment designed to attract foreign investment and international companies.    IFEZ has three Incheon City districts:    Songdo – hub for diverse international companies and international trade and an eco- friendly city of knowledge- based industries, such as information and communications technology and biotechnology, located in south Incheon.    Yeongjong – logistics and distribution hub centered on Incheon International Airport is evolving into an eco- friendly airport city with about 145,000 residents. In addition to the main $6.7 billion industrial logistics and residential complex, Yeongjong projects include tourism and industrial business facilities, a marina, and cultural and public facilities.    Cheongna – leisure and tourism hub on the mainland adjacent to Yeongjong Island, will feature a residential area for 90,000, a $530 million golf park and $118.6 million for theme parks. The main finance and business complex is a $6.3 billion development on 3,920 acres (1,586 hectares).

Construction of the $125- million convention center began in 2005, and ground was broken in February 2007 for the 65- floor landmark Northeast Asia Trade Tower.
   Near the international business center, the $3.5- billion, 151- story Incheon Twin Towers are due to be completed by 2012 in a joint venture by Portman Holdings, Hyundai and Samsung. Atlanta- based Portman is planning an overall $11 billion development in Songdo.
   Other milestones include groundbreaking for a private, English- language, international day school for 2,100 students. The first phase of residential building, the First World project, sold $1 billion worth of apartments in a single day. IFEZ officials estimate that Songdo already has 25,000 residents, with housing ultimately planned for a population of 252,500. (The entire IFEZ population is expected to be 487,000.)
   Songdo's master planner is New York- based Kohn Pedersen Fox (KPF). "Our first impulse was to bring the best of world design to the city," James von Klemperer, KPF principal, told the Urban Land Institute. "We wanted to draw on models such as the Sydney Opera House, the canals of Venice, the shopping streets of Boston. The intention was not to copy them, but to use them as models of scale and function, put together with Korean zoning precepts and matched to Korean culture."
   What emerged are plans for a Central Park, an ecotarium, an art museum, Jack Nicklaus golf course, international hospital and pharmacy, and a seawater canal through the city lined by a pedestrian promenade with shops, restaurants and entertainment facilities.    Korea realizes it's getting a late start in the competition for dominance among Northeast Asia business hubs. Powerhouses Hong Kong and Singapore are being challenged by up- and- comers Indonesia, Malaysia and Vietnam.
   Visiting IFEZ in December 2006 to view the progress,

Fast Facts I ncheon Free Economic Zone (IFEZ) is adopting a multi- hub development strategy calling for the construction of four hubs: international business and finance, global logistics, advanced IT/BT (information and bio technologies), and leisure/tourism.    IFEZ is planning to host an exposition in 2009 to showcase its progress.    South Korea is the world's 10th largest economy and seventh- largest U.S. export market. Bilateral trade with the U.S. reached about $72 billion in 2005. South Korea could gain a preferred trade status with the U.S. if negotiations under "fast- track" provisions are concluded in time.    Ninety- seven percent of Seoul's labor force has college or vocational training.    With a strong support infrastructure, South Korea is known as a predictably profitable place to do business, although it does not have the cheapest labor market.    An incubator cluster of 92 start- up companies and R&D centers is being supported by several Korean universities and private and public research labs at Songdo Techno Park.    The Songdo area will feature a state- of- the- art traffic system with "no noise, no delay, no pollution."    The Asian and Pacific Training Center for Information and Communication Technology for Development, a UN- sponsored organization, has moved into Songdo, near the international business, IT and R&D centers.

U.S. Ambassador Robert Hubbard congratulated the Korean government for supporting the hub concept. "This bold initiative reflects recognition that Korea must develop new sources of growth if it is to find its niche in a regional economy dominated by China's overwhelming manufacturing capability and Japan's continued technological prowess," he said.
   "With its relatively small population and generous wages, Korea can no longer rely primarily on large- scale manufacturing as its growth engine. To remain competitive, Korea must look increasingly to knowledge- based, high value- added industries," said Hubbard. "Korea must open its doors to the world's best technologies and business practices."
   IFEZ was launched in 2003 as a catalyst for recovery following the 1997- 98 financial crisis and the subsequent liberalization of laws concerning foreign real estate ownership in 2000. Since then, Korea has created two additional free economic zones.
   To begin improving the business climate in its FEZ strategy, Korea benchmarked best practices abroad and approved legal and institutional reforms, ensuring that the economic zones offer an attractive environment for outsiders. Foreign- invested companies entering IFEZ are entitled to a variety of benefits and support in terms of business and living conditions.
   Incheon International Airport, which opened in 2001, was immediately among Asia's major airports in terms of cargo and passengers. It currently is third largest in the world for cargo. A passenger satisfaction survey rated Incheon International the No.1 airport in the world in 2006.
   AMB, a U.S.- based global owner and developer of industrial real estate, has signed on to help grow IFEZ's logistics hub. In July 2006, AMB completed a ground lease to develop and own state- of- the- art logistics facilities in the free trade zone at the airport, an initial $42- million investment. AMB plans to lease distribution warehouses to global logistics firms for access to the Korean market and Incheon Airport.