98% conversion rate for Jeju

The Jeju Island vessel registration special districts system has been running smoothly since it began operating under the Island International Free City Special Law on April 1, 2002.

According to Jeju Regional Maritime & Fisheries Office on March 11, 478 vessels operated by Korean shipping companies switched their ports of registration to Jeju Island (414 vessels) and Seoguipo (64 vessels) by the end of February. Total vessels operated by Korean shipping companies from overseas come to 490, for a conversion rate of 98%.

Shortly after passing the Jeju Island International Free City Special Law, mostly large shipping companies such as HMM (Hyundai Merchant Marine) switched their ports of registration. As advertisements better informed shippers about the special districts system, small and mid sized shipping companies followed suit, changing their ports of registration to Jeju Island under the new law.

Also, thanks to a favorable business climate in the international shipping market last year, registration by Korean overseas shipping companies at Jeju and Seoguipo ports averaged 5 to 7 vessels per month.

By switching their ports of registration, shipping companies benefit from tax reductions and exemptions. Jeju Island has received 18 billion won in registration revenues, and 0.5 billion won in sailors' residents' taxes since April, 2002.