[Alpha Biz= Kim Jisun] Daegu, South Korea – The Daegu-Gyeongbuk Free Economic Zone Authority (DGFEZA), which oversees eight free economic zones in the Daegu-Gyeongbuk region, has been without a permanent head for over two months, prompting concerns that key projects may face delays.
DGFEZA is a central agency responsible for new industrial complex development, global investment attraction, and improving business settlement conditions, playing a pivotal role in expanding the region’s advanced industrial infrastructure. Former DGFEZA Commissioner Kim Byung-sam, who served for 2 years and 4 months, resigned on November 4, 2025, to join the People Power Party and run for Yeongcheon mayor, leaving the post vacant.
Under the Special Act on Designation and Operation of Free Economic Zones, the head of a free economic zone authority is appointed by the provincial mayor in consultation with the Minister of Trade, Industry and Energy. If the zone spans multiple provinces or cities, a joint appointment is required. Traditionally, Daegu and Gyeongbuk have alternated in appointing the commissioner, with the current appointment right resting with Daegu.
Observers note that, with local elections six months away, the acting commissioner is unlikely to push for a permanent appointment before the vote. The term of the new commissioner is three years, with the possibility of reappointment.
Officials warn that a prolonged leadership gap could weaken momentum on major projects. Expansion plans for existing free economic zones and consideration of additional zones have effectively stalled. For instance, the Second Suseong Alpha City project, intended to create new industrial land near the exhausted original Suseong Alpha City, faces uncertainty after failing fiscal and feasibility evaluations.
Other ongoing projects are also affected. Construction of the Lotte Mall within Suseong Alpha City, scheduled for completion in June 2026, has seen progress stall at around 20%. Industry insiders caution that extended leadership absence could slow critical decision-making in investment attraction and permit approvals.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
