Regional Headquarters Inducement Strategy of South Korea`s Free Economic Zones: The Pursuit of a Premier Business Hub in Northeast Asia

Abstract

South Korea`s ambitious plan to be a premier business hub in Northeast Asia, one of the main goals of which is to become a regional headquarters (RHQ) center, has sparked great interest in the Incheon Free Economic Zone (IFEZ). However, since the FEZ was established, its RHQ inducement strategy has been lackluster, as it has failed to attract targeted RHQs. The results of this paper have important implications for developing countries pursuing an RHQ inducement strategy through free economic zones (FEZs). The IFEZ policy has focused on overcoming the problems hindering the achievement of its goal of becoming a business hub for Northeast Asia through an RHQ inducement strategy.