The Ministry of Construction and Transportation says the South Korean government is pushing to expand a duty-free zone at the Incheon International Airport.

The ministry said the construction for the first phase to build a customs-free area of nearly one million square meters is now underway with completion expected by 2005. An additional one million square meters tract of land will also be designated as a duty-free area.

The ministry said it is consulting with other government agencies on the planned expansion and that the additional duty-free zone areas will be allocated next month at the earliest.

Within the customs-free zone, freight can be transferred, loaded, unloaded, exhibited and labeled free of duties. In an effort to lure foreign companies to the zone, the government said it plans to offer a number of tax incentives.