Relaxed Regulations
A revision to the special act on the Saemangeum Development Project passed the Cabinet meeting on April 7 before the discussion in the National Assembly scheduled for June.
According to the revision bill, the classification of the applications of the land in the zone is simplified into agriculture, industrial research, tourism and leisure. Earlier, it was said that the classification prior to the revision was too complex and fragmented to attract more investment. In addition, the rents for the land purchased by foreign-invested companies are going to be reduced, and the central government is planning to provide direct cost assistance for foreign medical facilities via the Korea Agency for Saemangeum Development and Investment, which is expected to lead to increased investment.
The criteria applied to the selection of project participants will be relaxed as well, so that smaller private developers can join the project via special purpose companies. Furthermore, minor changes in their development and execution plans do not have to be subject to deliberation by the Saemangeum Development Committee any more.
Foreigner-only casinos to be set up in the district can be deliberated by the Minister of Culture, Sports & Tourism prior to the official permission, and some of the authorization processes relating to the development project are to be handled by the Korea Agency for Saemangeum Development and Investment in order to expedite the administrative management.
“We are expecting that the revision bill will accelerate the entire Saemangeum Project,” North Jeolla Province said, adding, “However, it seems that even more revision is necessary to make the most of the Korea-China FTA, promote the exchange of manpower and goods, further simplify the immigration and customs formalities, and appeal to foreign investors.”