The Korean government released an investment promotion plan for tourism infrastructure and corporate investment on Jan. 18.
According to the government, the plan is expected to result in an investment of at least 25 trillion won (US$23 billion). Of that, 16.8 trillion won (US$15.6 billion) is expected to be invested in the development of the Korea Electric Power Corporation (KEPCO) site by the Hyundai Motor Group and in Yongsan from which the U.S. Army base is to be relocated. In addition, 8.5 trillion won (US$7.9 billion) is estimated to be spent regarding the construction of tourist hotels, two new resort complexes, and six urban high-tech industrial complexes.
One trillion won will be invested in each of the two casino-included resort complexes. The government is planning to allow domestic investors to participate as major shareholders by repealing the foreign shareholding ratio regulation of 51 percent. This means that any entity, including major business groups such as Samsung and Hyundai, can take part in the projects in fair competition.
The government will provide assistance for Hyundai Motor to develop the KEPCO site, which the car maker bought at over 10 trillion won (US$9.3 billion), to be kicked off next year, too. It is going to shorten the period required for approval to the maximum extent possible in cooperation with the authorities concerned, like Seoul City. It is expected that the Hyundai Motor Group will be able to be exempted from taxation on internal reserves if the construction starts next year with the site acknowledged as land for business use.