1 Trillion Won Investment Talks underway with Chinese Investor

Incheon City and DaeA T&C are having talks with Beijing Tingyuan Xingtai Investment Holdings Corporation for a one trillion won (US$939 million) investment in Incheon Robot Land. 

The construction of the Robot Land started in September last year in the 767,286 m2-wide site in and around 440-1, Wonchang-dong, Seo-gu, Incheon City. It is going to house robotics research institutes, robot industry support centers, exhibition halls, theme parks, commercial facilities, hotels, and other robot-related businesses. The Korean government is participating in the construction of the research and support centers, while the theme parks, water parks, street malls, and hotels are through private-sector investment. 

Beijing Tingyuan Xingtai Investment Holdings Corporation is known to have an investment capacity of approximately three trillion won. The parties started their negotiations in November 2013 and are discussing the details now. 

DaeA T&C and Hallyong International Investment, both of which are responsible for investment attraction and construction in Robot Land, were planning to build a hotel for medical tourists in Jeju or Taean on a request from China. However, with China’s investment in Jeju reaching saturation, the investment target has been changed to Incheon Robot Land, allowing for the advantages of the complex located in the vicinity of Seoul/Incheon International Airport and Incheon Port. 

The Chinese investment company is showing interest in international hotels for medical tourists and theme parks. The land for the latter is already prepared, and the project can start right away, but the former have to obtain the approval from the government. In addition, the purpose of use of the sites has to be changed from lodging to medical tourism. In order to do so, at least two-thirds of the shareholders of Incheon Robot Land Co., Ltd. have to agree at a meeting. The Chinese investor is planning to ensure this amount by acquiring the shares of some stockholders, such as Doosan Construction, Hanyang, and LG Electronics, and adding them to the 50 percent shares of Incheon City. 

The Chinese company is planning to invest about one trillion won in this project, 530 billion won (US$497.7 million) of which will be invested sooner or later. The rest is going to be spent in step with the progress of the project. Incheon City is expecting that an MOU for this purpose will be signed by March this year at the latest, so that the prior investment and site selling can be carried out before the end of the first half.