Free Trade Zone

The two prefecture-level special administrative regions in the East Asian Federation collectively known as the Free Trade Zone are Sinŭiju and Kaesŏng. Created in 2008 amidst the global economic crisis, the goals of the free trade zone were to decrease the unemployment rate in the hard hit Northern Korean region of the Federation, consisting of mostly primary and secondary sector jobs, both of which were hit hard by the recession. The unemployment rate inside of the two prefectures of the Free Trade Zone are the lowest in the Federation, 0.92% in Sinŭiju, 1.48% in Kaesŏng.

The economic systems of the two constituent prefectures is radically different from other prefectures in the Federation. In exchange for international corporations creating jobs inside of the Free Trade Zone, those companies enjoy five-percent tax rates on products created by workers in the zone, and a wage cap of 1500¥. The favorable regulatory conditions inside of the Free Trade Zone caused a surge in employment inside of the two regions, particularly Sinŭiju, due to its proximity to the North People's Republic of China. Migrant workers from throughout Asia come to the Zone to seek employment, which is generally always available as more and more companies move manufacturing operations to the Zone.

Participating Companies
Several multinational corporations have operations in the Free Trade Zone. These include: