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Fewer Regulations on Saemangeum Project, Direct Development Possible for Foreign Companies

(SEJONG=NEWSIS) Foreign companies will be able to engage in the direct development of the Saemangeum project.

The Ministry of Land, Infrastructure and Transport (MLIT) announced on July 2 that they will extend the scope of business operators to attract investment and reinvigorate the Saemangeum project.

The MLIT has pre-announced a revised enforcement decree on the promotion and support of the Saemangeum project on July 3 that will last for 40 days.

The scope of the project’s business operators will now include private businesses at home and abroad, i.e. foreign-invested companies, the Korea Federation of Small and Medium Businesses and business associations to promote the development and participation of private businesses in the Saemangeum project, such as attracting the Korea-China economic cooperation complex (a joint economic zone where Korea and China develop and execute projects in Saemangeum).

The current scope of private businesses for the development of Saemangeum is limited to general contractors, trusters, real estate investment trusts and real estate developers.

Land supply regulations that were created for developing raw land will be loosened.

The current principle is to use the land that was self-developed by the raw land developers (supplying land to others is permitted only after deliberation by the Saemangeum Committee). In the future, however, 50 percent of the developed part of the total raw land can be supplied to others. Land supply regulations and deliberations that had been developed by the raw land developers will be erased.

“Unlike other development projects, the raw land of the Saemangeum project requires a lot of prior investment, such as reclamation work by business operators. Therefore, it is necessary to ease regulations on raw land to retrieve the initial investment cost more easily,” said an MLIT official.

Raw land refers to land that has been reclaimed by a business operator of the Saemangeum project but not yet been developed.

Source Text

Source: Newsis (July. 02, 2014)

** This article was translated from the Korean.
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