Korea Land and Housing Corp. (LH) has signed a preliminary implementation agreement (PIA) for the construction of an industrial complex in the Russian Maritime Province of Siberia with Russia’s Far East Investment and Export Agency (FEIEA) and Far East Development Corp. (FEDC), in Moscow, Russia on Dec. 13 (local time).
LH will build a Korean-style industrial complext in Russia’s Maritime Province, a core region of Russian Far East, to support Korean small and medium-sized companies’ advance into the northern region and promote economic corporation between the two countries.
The industrial park project in Russia’s Maritime Province is in line with the “Nine-Bridge” initiatives under the Korean government’s “New Northern Policy.” The corporation plans to initiate a pilot project covering 50 hectares of the total 150 hectares within the Nadezhdinskaya advanced special economic zone (ASEZ), located 15 kilometers from Vladivostok International Airport in Russia.
To that end, the state-owned company will set up a local subsidiary in Russia by 2020 and directly manage and oversee the complex in order to provide one-stop services to the Korean companies operating in the complex. The Russian government will grant land for the development of the complex and build major infrastructure.
As Russia has agreed to build the infrastructure for the complex, this will help LH save construction and land acquisition costs and reduce risks.
A demand survey carried out by LH over the past year has shown that plenty of Korea’s small and medium-sized companies are keenly interested in the project. Of the companies surveyed, auto parts and agricultural and fishery food processing companies are most willing to operate in the industrial park. LH will continue to attract investment, targeting companies interested in moving to the Far East for new opportunities.