The objective of this study is to analyze the project performance and development process of the phase 1 project of GFEZ from 2004 to 2010. The phase 1 project from 2004 to 2010 is consist of eleven project zones. Among these zones, eight zones are currently underway and three zones have been completed. The performance of the phase 1 projects is no so much because it were stated later than planning with the difficulty of business developers selection. The major performances are development and supply of industrial & residential land, construction of road and railway, investment promotion of 102 companies, and creation of 20,971 new jobs. Most of the direct invested companies were located at Gwangyang and Yulchon Districts, and were mainly logistics and related service, iron and steel, machinery, shipbuilding, and fine chemicals. The main problems, however, are the limit of promotion of high-tech industries and large firms, low FDI reported rate, difficulty of superior business developers, delayed business progress of Hadong district. Therefore, efforts to solve these problems are required for the success of GFEZ.