Two U.S. firms to invest US$4 bln in Saemangeum project: governor

By Hwang Doo-hyong
WASHINGTON, Nov. 30 (Yonhap) -- Two U.S. firms will invest a combined US$4
billion into a South Korean industrial complex built on a reclaimed tidal flat, a
Korean provincial governor said here Monday.
Windsor Capital & Musa Group and Omni Holdings will invest $1 billion and $3
billion, respectively, into various projects at the Saemangeum complex in North
Jeolla Province, said Kim Wan-joo, its governor.
Kim added he will sign a memorandum of understanding with representatives from
the companies on Thursday in New York.
The governor told South Korean correspondents here that he will also deliver a
letter to Rep. Eni Faleomavaega (D-American Samoa) Tuesday asking the
representative -- who is chairman of the House subcommittee on Asia, the Pacific
and the global environment -- to request President Barack Obama's support for a
proposal to use a U.S. air base near Saemangeum for international commercial
chartered flights.
Allowing flights to the Kunsan base would require a revision of the Status of
Forces Agreement.
"A SOFA clause (allows) for up to 10 domestic commercial flights to land at the
Kunsan air base every day," Kim said, "and what we want is to revise the clause
to include international commercial chartered flights."
Kim said the use of Kunsan air base is critical to his provincial government's
efforts to attract foreign investment. The U.S. has been lukewarm towards the
proposed revision due to security concerns, he said.
The South Korean government has agreed to expand the U.S. air base to accommodate
international commercial flights to and from Saemangeum, the governor said,
adding the base would be used only during an interim period.
The government recently unveiled plans to invest 10 trillion won (US$8.8 billion)
by 2020 in the development of a tourism and industry hub within 24.4 square
kilometers of land inside Saemangeum to accommodate international schools,
theaters, museums, a 72-hole golf course, healthcare facilities and a residential
area that can accommodate up to 120,000 people.
The 400 square kilometer Saemangeum project began in 1991 and consumed over 2.4
trillion won in government spending.
Saemangeum is supposed to emerge as an attractive investment destination due to
its proximity to China, just across the Yellow Sea, with the North Jeolla
government expecting to accommodate up to 2,000 businesses, factories, logistics
bases, research and development centers, clean production factories and
international business complexes to facilitate trade.
Several energy-related companies from Singapore, Hong Kong and Taiwan have shown
interest, South Korean officials said, noting the national and provincial
governments will provide tax breaks, cheap land prices and other incentives to
companies investing in Saemangeum.
hdh@yna.co.kr
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