Hanwha in talks with gov't on research facility in Sejong City

(ATTN: ADDS details in paras 9-12)
SEOUL, Jan. 7 (Yonhap) -- Hanwha Group, a South Korean business conglomerate,
said Thursday it has held talks with the government on setting up a research
facility in a yet-to-be-built city in the nation's central region.
The government of President Lee Myung-bak is looking to persuade large companies
and private schools to establish facilities in Sejong City, about 150 kilometers
south of Seoul.
In 2005, the administration of then President Roh Moo-hyun planned to move nine
government ministries and four subsidiary agencies to the new city, named after
King Sejong, the Joseon Dynasty monarch who invented the Korean alphabet, by 2012
to promote balanced regional development.
President Lee, the successor of Roh, however, scrapped the plan, citing the
potential for inefficiency caused by dividing ministries and agencies between
Seoul and the new city. Lee instead proposed creating a "science-business" hub.
Cheap land, low taxes and hefty government subsidies will be among a range of
incentives available for private businesses willing to build facilities in Sejong
City, government officials said.
"After reviewing the government's incentive proposals, we suggested building a
research and development facility there," said an official at Hanwha.
"However, nothing has been confirmed yet," the official said.
Hanwha's business interests include chemicals, explosives, insurance and
construction.
Business giants Samsung Electronics Co. and SK Group are also considering
building facilities in the new city, according to media reports.
Samsung, the world's largest maker of liquid crystal display panels, was mulling
setting up a production line to produce light emitting diode backlight units or a
facility for generic drugs, the reports said.
SK, which has business interests ranging from oil refineries to
telecommunications and securities, was looking to build a car-battery plant in
Sejong City, according to the reports.
The groups have declined to confirm the reports, however, remaining tightlipped
over details of their plans.
On Monday, the government plans to announce details of incentives for businesses
and institutions that relocate to Sejong City.
(END)