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Korea Herald
16 hours ago
- Business
- Korea Herald
Azerbaijan keen for Korean manufacturing in Alat FEZ: chairman
Azerbaijan is keen for industrial cooperation with South Korea and is inviting Korean manufacturers to invest in the Alat Free Economic Zone, said Valeh Alasgarov, Chairman of the AFEZ Authority, in an interview with The Korea Herald. Alasgarov was in Seoul to showcase AFEZ's legal framework, fiscal and non-fiscal incentives and strategic location as a gateway to European, Middle Eastern and Central Asian markets. 'We are looking for Korean manufacturers that specialize in high-value-added and export-oriented production,' said Alasgarov. 'AFEZ offers a uniquely tailored platform for such companies to thrive with the highest levels of legal protection, operational efficiency and financial benefits.' Alasgarov held a series of bilateral meetings with major Korean institutions, including the Korea Trade-Investment Promotion Agency and the Korea International Trade Association, to promote AFEZ and discuss future partnerships. 'These organizations expressed genuine interest in the zones," he noted, citing his meetings with officials from the Incheon Free Economic Zone Administration. Alasgarov acknowledged increased Korea and Azerbaijan trade ties but says industrial cooperation with Korea — particularly in manufacturing — remains underdeveloped. He highlighted Azerbaijan's strategic location as a key advantage for Korean manufacturers looking to expand into surrounding regions. According to Alasgarov, AFEZ's investment policy gives preference to companies engaged in high-value-added manufacturing with a clear export focus. 'As I always mention, we are ready to consider any proposal, but we will prioritize investors who bring innovative technologies, align with international standards and commit to export-oriented production,' he said. 'At least 75 percent of goods produced within AFEZ must be exported outside of Azerbaijan. This requirement is designed to ensure the zone's competitiveness and avoid the emergence of small-scale enterprises focused solely on the local market.' He pointed out that Korean industries — particularly in sectors like machinery, electronics, automobiles and pharmaceuticals — are well-aligned with AFEZ's strategic focus. Alasgarov stressed that AFEZ operates under a distinct legal regime that supersedes Azerbaijan's base economy laws, ensuring operational clarity and legal certainty for foreign investors. 'AFEZ is governed by a dedicated law passed by parliament and signed by the president and further regulated through internal AFEZ regulations,' he explained. 'This means Korean investors are not subject to base economy authorities. All licensing, taxation and labor issues are managed solely by AFEZ's independent regulatory body.' 'This eliminates bureaucratic overlap and provides Korean investors with a clear, consistent and protected legal environment for decision-making.' Alasgarov highlighted full exemption from VAT, corporate tax and customs duties on imports and exports. No personal income tax for employees earning up to 8,000 AZN ($4,700) per month, optional social security contributions for foreign personnel, no restrictions on foreign ownership, currency transactions or profit repatriation, and full protection of intellectual property rights are strong points for Korean manufacturers. 'AFEZ also provides industrial land plots with ready-to-use infrastructure and utilities, enabling immediate and cost-effective project implementation,' Alasgarov said. 'All business-related administrative processes — registration, licensing and permitting — are centralized in an on-site one-stop shop, with no involvement from base economy agencies.' sanjaykumar@
Korea Herald
06-05-2025
- Business
- Korea Herald
Azerbaijan urges Korean firms to invest in Alat FEZ
Azerbaijan commended Korean manufacturing companies to its Alat Free Economic Zone investment hub at a networking event held Wednesday at Ambassador Pullman Seoul. Speaking at "Alat Free Economic Zone: Unlocking potential for Korean manufacturing companies," Azerbaijani Ambassador to Korea Ramin Hasanov recommended AFEZ as a gateway for Korean investors seeking access to the wider Caucasus and Central Asian markets. Hasanov highlighted AFEZ's strategic location near major production and export hubs such as Baku International Sea Trade Port, and plans for a fully green airport to be completed by 2026. 'Korean investors are welcome to explore a myriad of commercial advantages provided by Alat Free Economic Zone,' he underlined. Azerbaijan is expanding specialized industrial sites, such as agri-parks, techno-parks and industrial districts, to attract foreign investment, while leveraging the strategic value of regional connectivity projects, particularly the Trans-Caspian East-West Middle Corridor, which links Turkey to Central Asia and China via the Caucasus and Caspian Sea, according to Hasanov. 'We invite Korean transit operators, freight-forwarding and logistics companies to benefit from the economic advantages provided by the Middle Corridor," said Hasanov. According to Hasanov, Azerbaijan is developing new cities and towns from the ground up using green technologies, modern urban planning and intelligent systems, while promoting smart city, smart village and smart farm concepts. 'Our goal is to transform these areas into net-zero emission zones by 2050.' 'Korea is one of the few countries worldwide that has been invited at the highest level to participate in the restoration and reconstruction works conducted in our liberated territories,' he noted, inviting Korean investors to the Garabagh and East Zangazur economic regions. sanjaykumar@
