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Tourism Project for 2018 Pyeongchang Winter Olympics Special Zone
Date
2014.05.27
Views
3135

■ Gangneung-si, Gangwon-do

  • Area: 1,040㎢ (1.72 times that of Seoul)
  • Population: 220,000 (86,000 households)
  • GRDP (2011): KRW 3.442 trillion *11.4% of Gangwon-do's total GRDP (KRW 30 trillion)
  • Regional characteristics: A tourism/recuperation town on the East Coast of Gangwon-do
    ※ One of the venues of the 2018 Pyeongchang Winter Olympic Games (5 events)
  • Transportation network:
    - Seoul-Gangneung Yeongdong Highway (3 hr), Double-Track railroad connecting Wonju and Gangneung (approx. 1 hr, to be completed in 2017)
    - Yangyang International Airport (Airport-Gyeongpo, 46.7km) Donghae Trade Port (16 berths,) Okgye Industrial Port, etc.

■ Project Overview

ㆍBackground
Article 40 of the Special Law on Supporting the 2018 Pyeongchang Winter Olympic Games to establish Gangneung Culture and Olympic Special District (2.84k㎡,) where the project site of the Green Business/Coastal Recuperation Area (2.19k㎡) is located

□ Development of Green Business/ Maritime Recreation Area

  • Development Concept
    - Location: Gyoungpo Beach, Anhyeon-dong, Gangneung-si
    - Area: 739,925㎡
    - Financing Plan: To induce private capital by establishing SPCs, etc.
    - Project Budget; KRW 147.9 billion
    - Project contents: Accommodation (youth hostel, villa compounds,) amusement parks (Ferris Wheel, Water Park,) convention center, observatory, and many other facilities
  • Land price: KRW 1 - 1.5 million (per 3.3 ㎡)
    - Share ratio of land: 30% owned by the government or local authority (20% owned by the city,) 70% owned privately
  • Land usage plan: Natural environment preservation area → Planned management area (until early 2015)

□ Gyeongpo Tourism/Accommodation Village

  • Development Concept (tentatively called "Lake Beach Hotel")
    - Location: 258-5 Gangmun-dong, Gangneung-si plus 2 lots (total: 8,285㎡ )
    - Project size: 31,025.60㎡ (3 basements, 6 floors, 253 guest rooms)
    - Project budget: KRW 90 billion (private investment,) * The original construction permit has been canceled, and the city government is looking for a new developer.
    - Financing plan: Private investment by a single developer
    - Project type: Hotel, condo, etc.
  • Total land price: KRW 20 - 25 billion (estimated)
    - A public tender by KDIC is in progress (first half of 2014).
  • Land usage plan: Natural environment preservation area -> Planned management area (until early 2015)
    ※ The project area may increase by purchasing additional lots in neighboring commercial areas.

■ Advantages for Investment

  • Donghae Rim Economic Zone (West Japan, 3 Northeastern provinces of China, and Russian Far East)
  • Located in the beautiful east coast of Korea
  • Possibility of making profits by supplying high-quality accommodation facilities to serve the increased need due to foreign visitors to the winter Olympic games.
  • Various tax incentives for the "special" Olympic district.

□ Key Indices

ㆍA total of 150 million population living around the Pacific rim economic zone, which accounts for GRDP of 1 trillion dollars
    - 1 billion population with 2 hours' flight during the Olympic games, 3 billion population within 5 hours' flight
ㆍCompetitiveness of the Korean tourism industry in the world for the year 2013: Ranked 20th in the entire world (in terms of human, cultural, and natural resources)
    - Foreign tourists: (‘09)7,818▶(‘10)8,798▶(‘11)9,795▶(‘12)11,14,000
    - Korea is one of the most popular destinations for Chinese tourists, next only to Hong Kong and Macao. (The number of Chinese tourists is expected to exceed 100 mil. in 2014 and 400 mil. in five years.)
ㆍThe number of tourists who are expected to visit the Olympic games venue (for 10 years) is approx. 31.57 mil. (approx. 35% of the total number of tourists who visit Gangwon-do).
    - Foreign tourists who visit Gangwon-do: (‘09)879▶(‘10)1,029▶(‘11)1,087▶(‘12)1,081,000
    - Korean tourists who visit Gangwon-do: (‘10)8,610▶(‘11)9,264▶(‘12)10,181,000

■ Detailed Location

■ Benefits for Companies Investing in the Complex

Item Description Ground Target
Reduction of tax and other charges Reduction of corporate tax, income tax, tariff, general real estate income tax, value-added tax, acquisition tax, registration and license tax, and property tax for domestic and foreign companies investing or moving in to the special district.
※ Draft proposal for the amendment of the Law on the Limitation of Tax (Local Tax) Benefits currently being processed by the National Assembly
Article 61 of the Act To be applied on a case-to-case basis
Special incentives for building coverage and floor area ratio in the special district ncrease the building coverage and floor ratio allowed in the city or county ordinances by 50%. Article 51 of the Act
Article 34 of the implementation ordinance
Common
Financial grants for development projects in the special district Loans or grants from the Tourism Promotion Fund for the construction of tourism infrastructure or promotion of the project within the special district Article 60 of the Act
(Item 3)
Developer of a project in the special district
※ Please contact the following to check the availability of the grants and benefits:

□ Investment Contacts

ㆍInvestment Promotion Division: T.+82-33-249-2959
ㆍUrban Rehabilitation Team / Tourism Team, Gangneung-si: T.+82-33-640-5925/5127