Up to 500 mid-sized firms may set up shop in Sejong City

SEOUL, Jan. 18 (Yonhap) -- Hundreds of mid-size South Korean firms may launch
operations in a new city that the government claims will become a business hub, a
business association said Monday.
Earlier this year, Samsung Group and a number of other major conglomerates
announced plans to invest 4.4 trillion won (US$4 billion) to build plants in
Sejong City, located about 150 kilometers south of Seoul.
The government announced plans this month to transform Sejong, originally
designed to be an administrative center that would help balance national growth,
into a business and science hub. The controversial shift in course is subject to
parliamentary approval.
"We are negotiating with the government over a business complex estimated at 1.32
million square meters," said Kim Ki-mun, chairman of the Korea Federation of
Small and Medium Business. "Up to 500 smaller companies may nestle in the city."
President Lee Myung-bak has been criticized by opposition lawmakers for
overturning the previous administration's plan to move nine ministries and four
government agencies to Sejong City.
Lee's administration says relying on businesses instead of government
organizations will be more effective in drawing people away from the capital and
fueling regional development.
sam@yna.co.kr
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