Japanese fund weighs US$3 bln investment in S. Korean trade zone

SEOUL, March 4 (Yonhap) -- A Japanese private equity fund may invest US$3 billion
into an ambitious project to build a free trade zone in the South Korean city of
Incheon, a government trade agency said Wednesday.
The South Korean government began construction of the trade zone in 2005 on
reclaimed land in Incheon, calling it New Songdo City. The 10-year project aims
to build commercial districts to take advantage of the nearby Chinese market.
Executives at Japan's Vana World, which specializes in property investment, have
been in talks with the Korea Trade and Investment Promotion Agency and plan to
sign a letter of intent on the investment on Thursday, officials at the South
Korean agency said.
"The size of Vana World's investment in South Korea is US$3 billion," said an
official at the agency.
Other Japanese firms have also been in talks with the South Korean trade body on
potential property purchases, the official said, adding that the yen's 80-percent
advance against the Korean won has stimulated interest.
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