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The Emerging Korea

The Korean government held an extended meeting of tourism and budget-related ministers and provincial government heads and mayors at Chong Wa Dae July 19th with the goal of devising measures to promote the nation's tourism industry. Wrapping up the meeting, chaired by President Kim Dae-jung, the government unveiled an ambitious project for the development of new tourism complexes over the next 10 years.

The Ministry of Culture and Tourism announced a plan to set up a tourism belt along the southern coastal area covering 23 cities and counties between Busan and Mokpo costing some 5.04 trillion won between now and 2009. The program features, among other points, the development of four major areas in accordance with their regional characteristics and the envisioned number of tourists. Busan and its vicinity will be developed as an urban tourism zone. Meanwhile, three other areas will be developed as oceanic leisure, comprehensive resort, and historical and cultural zones.

Yoesu, Jeollanam-do (or Jeonnam for short) and the adjoining Namhae and Sacheon provinces will be linked under the comprehensive oceanic resort program designed to provide entertainment and leisure facilities. Mokpo, the capital of Jeonnam province, will be the focal point in the development of the surrounding area as a historical and cultural destination. Various cultural heritage sites will be restored, and a massive floral complex will be established in Haenam as the anchor project of an environmentally friendly, high quality resort complex.

The project will spell a shift in the focus of national development, long concentrated on the Seoul/Busan axis, toward the southwestern coastal areas where the potential for growth is huge. Due largely to political reasons, the southwestern-most province of Jeollanam-do has been left out in the cold in terms of regional development, but it has emerged as the most outstanding beneficiary of this government project launched in the name of balanced regional development.

In this respect, Lee Sang-ho, director general of the province's Bureau of Economy and Trade said, "Given the overcrowding in metropolitan Seoul and the southeastern Gyeongsang region, historically the mainstays of national development, it is high time to focus on the southwestern province, Jeonnam." Mr. Lee added, "The project for the development of the tourism belt along the southern coast will be the starting point."

Jeollanam-do is a relatively low-density region, having a population of 2.2 million in an area of 11,982 square kilometers, equivalent to 12 percent of the entire national area. Although Jeju and Gwangju were once part of the province, Jeju was given provincial status of its own in 1946, while Gwangju was separated in 1986 and upgraded to the status of an autonomous city.

Agriculture and the fishery industry have flourished in the province, given its fertile land, its coastal location plus freshwater resources like the Yeongsan River in the west, the Seomjin River in the east, and the Tamjin River in the south.

As of the end of 1999, the proportion of the population engaged in agriculture and fisheries accounted for 35.5 percent of all employment, compared to a national average of 9.5 percent. An increasing proportion of the economically active population has begun to shift to the service and manufacturing sectors, which currently account for 55.2 percent and 9.3 percent of employment, respectively. However, the province is seeking to concentrate on industries with high added value.

Focus on Bioindustry

The provincial government is planning to promote the bioindustry as the mainstay economic activity of the region by building on the advantages offered by its existing agricultural and fishing industries.

In June last year, the province unveiled a blueprint for the future development of the bioindustry, which was submitted to the central government. The move follows negotiations with the central government in April this year on how such a program may be implemented.

Jeollanam-do province offers good conditions for fostering the bioindustry. For example, it is replete with human resources vested with the necessary expertise. Some 1,000 local academics and researchers specialize in the primary industries. The province also produces a variety of agricultural, fishing, forestry, and livestock products, which are essential to research in the biofarming and biofood sectors.

According to research conducted by the Korea Institute for Industrial Economics and Trade (a think tank for national industrial policy) and the Institute for the Development of Gwangju and Jeonnam on how the province's biofarming/food industries can be developed, the province ranks high in potential. Their estimation is based on the fact the province has a relatively large number of agri-business, fishing and forestry goods, and food and beverage concerns.

In addition, the province has a technological base that the industry can draw on, plus significant potential local consumption for its products. Furthermore, the two institutes underlined that there will be both synergy and offset effects associated with the joint development of the biofarming and biofood industries, since they have similarities in terms of technology and consumption patterns. Securing investment will be a key factor in determining the success or failure of the province's bid to develop bioindustry locally.

The Korean government has remained positive toward the promotion of bioindustry in Jeonnam in view of the merits the province possesses. Observers noted that should the province succeed in securing investment, it would be a landmark event that will herald a watershed in its development.  

A Treasure House of Cultural Heritage and a Tourist Mecca in the Making

The province has also focused on tourism promotion as a means of building the local economic base along with the development of bio industry . Jeonnam has been regarded as the regional "home of art," and accommodates five national parks including those centered on Mts. Jiri, Baegam, and Wolchul. Together, they comprise 25 percent of the area of all national parks. The world's largest dinosaur fossils were discovered in the areas of Haenam, Hwasun and Boseong. In fact, a footprint fossil located in Uhangri, Haenam was discovered to be 65 million to 95 million years old, one of the world's oldest.

The world's largest grouping of dolmens, 20,000 in all, may be found within Hwasun County in Jeonnam. They have attracted huge attention from academic circles at home and abroad, and will be registered with UNESCO as world cultural heritage items. There are many artifacts in Wando pertaining to the achievements of Admiral Jang Bo-go who dominated oceanic trade in the Yellow, China, and East Seas during the ninth century at the time of the Shilla Kingdom .

The Gangjin area is proud to be the origin of the famous Goryeo blue ceramic, which constitutes a major chapter in the history of world ceramics. In addition, Jeonnam is the home of pansori, the best known of traditional Korean folk music, a unique art form that mixes "chang"(singing) and literature.

Originating during the 18th century, pansori can be classified into "seo (west) pyeonjae" and "dong (east) pyeonjae." The former was sung in western areas such as Gwangju, Naju, Boseong, Gangjin, and Haenam around the Seomjin River and is characterized by soft and melancholic rhythms. The latter was popular in eastern areas like Gurye, Namwon, and Sunchang. It is grand in style, featuring strong rhythms.

The province also boasts other attributes. This province's cuisine is regarded as the nation's best. It is also the home of the "nam hwa" (southern picture) school of painting, which depicts landscapes in a traditional style, and "sigamunhak" a canon of poetry, song, and literature. Its clay beaches are regarded as the finest of their type in the world.

The most valuable of Jeonnam's tourism resources are its islets. There are 1,969 in total, some 62 percent of the national total of 3,169. The area extending from Yeongkwang on the coast of the Western Sea to Sinan, Jindo, Wando, Goheung, and Yeosu on the Southern Sea have been designated as the Dadohae (or "Archipelago Sea" National Ocean Park. Areas of breathtaking scenery, the islets within the park are considered virtual treasure houses of artifacts from the prehistoric era.

Of the total number of islets in Jeonnam, 280 are inhabited and 1,689 are uninhabited. Most of the latter remain untouched and are regarded as ideal for tourism development. The province has thus sped up efforts to build the necessary infrastructure to make them more accessible to both domestic and foreign tourists.

Mr. Lee said that the province plans to connect the islets with bridges in unique designs so that tourists can enjoy both the scenery and the means by which they travel. This project to link the islets is intended to enhance the tourism industry by significantly reducing transportation costs.

Investment Success

Since attracting domestic and foreign investment is essential for the realization of these projects, the province has set up a task force dedicated to this end. Since 1967, a total of 51 foreign companies have located in Jeonnam province representing $1.9 billion in investment, a relatively small amount compared to other provinces.   In this respect, Park Byung-ha, deputy director of the provincial government's foreign investment promotion office , admitted that the province has lagged behind others in terms of industrialization. "The small foreign investment can be ascribed to the lack of infrastructure which otherwise could support the operation of foreign companies here." he said.

Despite this lack, the province offers a favorable investment climate to locating foreign companies. Primarily, the provincial government and its officials are keen to induce domestic and foreign companies and are extremely cooperative toward that end. Furthermore, local residents are positive toward foreigners and foreign businesses. Peaceful industrial relations are the norm here, the province having recorded relatively few labor-management disputes.

Gwangyang Steel Mill on Gwang-yang Bay in the east of the province is one of the world's largest steel mills, producing an average of 14.40 million tons of steel goods per year. The Yeocheon Petrochemical Complex, the largest of its kind in Korea, manufactures basic material for related industries. In addition, on the basis of its soil rich in Goryeong clay and silica, the province produces massive amounts of various farming and livestock products, thus providing local agri-business with a steady and abundant supply of raw materials.

With an ample supply of mildly sloping developable land and land reclaimed along the shore, the province can easily provide locating enterprises with sufficient space for their operations at reasonable prices. Currently, 17 industrial complexes covering 190 million square meters are now operating, and are ready to begin distribution of lots, or are slated for development.

Seventeen colleges and universities and 38 graduate institutes produce some 45,000 high quality graduates per year while 85 engineering high schools and 104 vocational training institutes produce around 20,000 engineering personnel per year, auguring well for potential foreign investors in the manufacturing field.

Expanding Social Overhead Capital

The provincial government has focused on expanding local social overhead capital (SOC) facilities, judging it vital to attract domestic and foreign investment. In fact, the lack of SOC has been the biggest barrier to outside investment in the province.

Geographically, the province is located at the center of Northeast Asia. Bounded by the sea to the west and south, oceanic shipping out of the province is easier than in other parts of the country, an advantage for companies seeking to do business with China and Southeast Asia.

Making the most of its attributes, the province is planning to develop its eastern portion around Gwangyang Port as a distribution/manufacturing hub for Northeast Asia. The eastern portion offers well-developed infrastructure facilities such as Yeosu's seaport and airport and the Yeocheon Chemical Complex, which is home to LG Chem. Meanwhile, other corporations which have taken advantage of the area's infrastructure facilities include POSCO in Gwangyang and BASF in Yeosu.

Since it opened two years ago, the volume of cargo handled by Gwangyang Container Port has risen steadily and was expected to have reached 774,513 TEUs (20-foot equivalent units) by the end of June this year. The port is forecast to handle 1.6 million TEUs next year, two-fold that expected for all of 2000 should it be designated a tariff-free zone in the latter half of this year as planned . Preparations are under way to develop Gwangyang as one of the world's ten major container ports, handling 6 million TEUs annually by 2011 through 28 berths and playing a key role in transportation in Northeast Asia.

In addition to Gwangyang Port, the province is building a new port at Mokpo to the west. Construction began in 1993 on the 684.5 billion won project, which will be completed in 2011. Under the project, the Goha and Heosa Islands off Mokpo will be connected to accommodate 22 20,000-ton to 30,000-ton-class berths, the resultant port being of an international scale to compare with Gwangyang Port.

The province is also planning to construct an international airport in Muan near Mokpo in order to facilitate an expansion of aviation traffic. The project will complement the province's recent expansion of runways at Mokpo and Yeosu Airports. The construction of Muan International Airport, which was earlier scheduled to start at the end of last year, began in July this year in earnest following completion of negotiations with local landowners on compensation.

The new international airport is slated to begin operation at the end of 2002. The 315 billion won project will cover some 2,473,000 square meters and features a 2,800-meter runway and an international- standard passenger terminal.

In addition to the port and airport projects, the province has embarked on a major drive to develop the local highway and railway networks. The construction of the West Coast Expressway began in 1990 and is slated for completion during 2001. The 353-kilometer expressway will link Incheon and Mokpo and is expected to drastically shorten the traveling time from Seoul and Gyeonggi province to Jeonnam province.

Construction of the Honam High Speed Railway between Seoul and points in Jeonnam areas began in 1995 and is due to be wrapped up in 2005. The expressway linking Gwangyang and Jeonju will be completed in 2005. A planned Muan-Suncheon expressway will cross the middle of the province for the purpose of enhancing transportation between its eastern and western regions. The construction of a highway linking Mokpo and Gwangyang and a railway between Mokpo and Boseong is expected to redefine distribution patterns and systems in the province, should they be completed at the end of this year

In particular, a project to upgrade a road that traces the entire southern and western coasts, linking Hongnong-eup in Yeounggwang county and Taein-dong in Gwangyang City has been given added impetus since the Ministry of Culture and Tourism ministry announced it would be raised from provincial to national status. The announcement was made at a meeting held to encourage national tourism, presided over by President Kim Dae-jung last July. The move will guarantee the project assistance from the state coffer. Construction of the road began in 1996 and is due to be completed by 2010.

The road is expected to become a huge attraction since it will link many of the islets scattered throughout the West and South Seas to each other and to the mainland through some 29 bridges. Only 175 kilometers of the 793- kilometer project has been constructed or refurbished so far.

Once the project achieves national road status, the road is expected to form a core element in the development of the tourism belt along the southern coast and the tourism industry of Jeollanam-do in general.  

The West-South Sea Coasts - The Future of Jeollanam-do

With the development of the West and South Sea coastal areas in the manner represented by such projects as the Southern Coast Tourism Belt, Muan International Airport, and the coast road, Jeonam's provincial capital will move from Gwangju to the new city of Namak near Mokpo. The projected move exemplifies the belief by the province that the future of Jeollanam-do lies in the continuing development of its coastal areas.

The Jeollanam-do provincial government in March unveiled a plan to establish a new 14.75 million-square meter city for completion by 2019. The new city is intended to accommodate 150,000 people. Under the master plan, "Namak New City" will be developed as an environmentally-friendly, state-of-the-art city, designed to play a mainstay role as a transportation and informatization hub in the East Asia of the 21st century.

The new city will accommodate a massive information and communications center, a related 544,500-square meter research complex plus an oceanic theme park involving a fishing information center, a massive aquarium, and an observation pavilion. To be situated on the shores of Lake Yeongsan, the new city will be designed to be in both ecologically in harmony with its surroundings and as a trading center for companies targeting China and Southeast Asia.

The Korean government proposed in June last year that the province should host the 2010 World Exposition in Yeosu. The provincial government has enthusiastically backed the project with the aim of maximizing synergies that would be generated by the moving of the provincial capital .

A state-run bidding committee was set up this year by the prime minister who will serve as its chair. Provincial governor Huh Kyung- Man undertook a nine-day visit to Latin American World Exposition member companies beginning on July 24th to solicit support for Jeollanam-do's bid.

The site in Yeosu, Jeonnam, where the province plans to hold the expo covers an area of 3.37 million meters. The six-month long event is scheduled to commence in May 2010 and is expected to draw 30 million visitors from 150 countries, thus serving to focus attention on Yeosu as a prime element in the world-class, Southern Coastal Tourism Belt Project.

The province projects that the exposition will generate economic benefits worth more than 31 trillion won and in the process create some 540,000 jobs.
 

Mr. Lee commented: "A successful hosting of the 2010 exposition will be a watershed event for Jeollanam-do, acting as a catalyst for sustained development through the 21st century."

He called for further investment into the province, citing its abundant and low-priced industrial land, its merits as a latecomer to development, and its natural oceanic resources including a galaxy of islets and long coastline .

"There's no better time to invest in our province than the present, given the fact that it will take two to three years for investing companies to construct and run their factories, in time for when the province completes its industrial infrastructure projects by the years 2003 and 2004," Mr. Lee said.

As evidence of the confidence foreign investors have in the viability of Jeonnam as a destination for successful investment, he pointed out that since BASF Korea located in Yeosu, the German corporation has been keen to expand its industrial facilities through continual capital increases . "Watch Jeonnam closely; it's our province that's going to be the new wellspring of opportunity in Korea." Mr. Lee said.

Jeollanam-do Provincial Government
Foreign Investment Promotion Office
Tel: (82-62) 224-2282, Fax: (82-62) 607-6176
Http://www.provin.chonnam.kr
E-mail: P3333@provin.chonnam.kr

Seoul Office
Tel: (82-2) 529-1905, Fax: (82-2) 3462-2913
E-mail: cnfiic@dreamwiz.com

by Kwan Seok Lee(kslee@kotra.co.kr)

The Tourism Project of the Century

Jeonnam has four distinctive seasons and the generally mild and moist weather typical of the Temperate Zone. A total of 1,969 islands, scattered along the province's West and South Sea coasts, offer fascinating scenery and are lapped by some of the cleanest waters in the Northeast Pacific, all vital assets on which the province's tourism industry will be built.

The province aims to capitalize on them by attracting foreign investment to operate cruise ships on the Dadohae ( or "Archipelago Sea" and build a resort complex Goha Island to name but two initiatives.  

The Dadohae Cruise Project

This project has been designed to promote the Dadohae area as a tourist destination by capitalizing on the region's natural beauty. Interested parties have already wrapped up a feasibility study for the project. Projections indicate that the project will be extremely lucrative as the area features some of Asia's most breathtaking, but largely unknown scenery. The project calls for the operation of three types of outbound cruise ships. They include 15,000 ton-class ships, which can accommodate 600 passengers and are designed for international tourists; 3,000 ton-class boats that can accommodate some 300 passengers, planned for operation in domestic coastal waters and intended to meet domestic tourist demand; and vessels of 1,000 tons that can carry some 600 passengers for restaurant and general entertainment purposes.

The boats will leave from Yeosu and Mokpo, respectively via such destinations of outstanding tourist potential as Heuksan, Gwanmae, Wan, Naro, and Geomun Islands. Port calls by the vessels will triple on a three-stage gradual basis . At the initial stage, the operation will cover all the Dadohae islands while during the second, all the coastal areas of the West, South, and East Seas throughout the nation will be encompassed. At the third stage, operations will be extended to cover major destinations in Japan, China, and Southeast Asia. The province estimates some 10.4 billion won will be needed for the project, which will be initiated as soon as investment is attracted and contractors are chosen.

The project will be pursued on a turnkey basis whereby the project leader will take charge of construction from initial drafting through to the commencement of operations. Investors will be offered various incentives. For instance , operating and development rights for accommodation and commercial facilities, and casino operating rights for international outbound cruise ships. Investors will also be given priority in the selection of project leaders for businesses concerned with the construction of the port facilities.  

Goha Island Development Project

Jeonnam provincial and Mokpo city governments are in the process of developing resort areas covering 1,985,000 square meters (600,000 pyong) on Goha Island. Located 700 meters offshore from Mokpo, the island offers favorable conditions for development. It features commanding views of the sunset over the Archipelago Sea and low hilly areas in the central part of the island. Goha lies in the virtual embrace of the Yudal Mountain Nature Park and faces the Archipelago Sea to the west.

Yudal Mountain area attracts about a million visitors every year, and its residential population is expected to surge from the current 250,000 to 500,000 following the development of a new city, Hadang, in the vicinity and the relocation of the provincial government. Also, the area is poised to experience an increase in the number of tourists and leisure demand with the construction of Muan International Airport, the West Sea Highway, the Kwangyang Highway, and Mokpo New Port.

The Goha Island development project is modeled on the Sentosa Island resort area in Singapore. Like Sentosa Island, Goha Island is very close - only 700 meters - from the mainland. Under the project, the island will be linked to the mainland and the adjacent Bukhang resort area by cable car, ferries, and a bridge. Also, top-class amenities such as hotels and leisure facilities will be developed on the island. Goha Island is better positioned than Sentosa Island for development because of its superior coastline.

The area is also richer in tourism resources, abounding in mountains, historical sites, and enticing islands. Mokpo is blessed with a backdrop of Mts. Naejang, Jiri, Wolchul, and Duryun. It also offers beautiful seascapes, and its offshore waters are dotted with islands such as Seonyu, Imja, Heuksan and Hongdo.

The central and local governments are committed to giving full support to the development projects. Mokpo City government will act as a proxy for foreign investors seeking to purchase real estate for development. Also, the government has committed to constructing a range of transportation facilities to boost access to the resort area, plus a road system linking the West Sea Highway and Muan International Airport with Goha Island. It also plans to build roads to access to Mokpo New Port from adjacent cities, roads connecting Yudal Mountain with the Bukhang resort area, and a railway linking Mokpo and Goha Island.

 Daebul National Industrial Complex

Daebul National Industrial Complex is located in Jeollanam-do province, in the southwest of Korea, and stands close to the important regional cities of Mokpo and Gwangju. Businesses eligible to enter the complex include steel, machinery and machinery parts, electronic goods, automotive components, paper, and construction materials.  

Some 11.1 square kilometers in area, the Daebul National Industrial Complex offers ideal conditions for locating businesses. It has already attracted major multinational corporations such as Bowater-Halla Paper and PCN International. Its coastal location and proximity to the Chinese and other Northeast Asian markets makes the complex an excellent choice for situating import- and export-oriented industries. Through substantial national investment in social overhead capital (SOC), a comprehensive network of land, marine, and air transportation infrastructure will be in place in the southwest of Korea by 2002. A ready supply of skilled labor is guaranteed through seven universities, 22 vocational high schools and 26 trade training centers located in the Mokpo vicinity.

Together, they produce 26,000 top quality industrial and technical personnel annually. The procurement of raw materials such as steel and petrochemical products is conveniently facilitated through its proximity to the heavy chemical industrial complexes situated in the Gwangyang Bay region. An attractive residential environment is offered by the port city of Mokpo with its population of 250,000. Gwangju city with a population of 2.3 million is 80 kilometers (50 miles) from the complex.

A massive upgrade of the local transportation network is scheduled for completion by 2002. The construction of the West Coast Expressway, which will bring Incheon Metropolitan City within a 3 hour drive of the complex, will be completed in 2001. Meanwhile, the Mokpo-Gwangyang Expressway is scheduled to be operational by 2002. The New Mokpo Outer Port, designed to berth four 20,000 to 30,000-ton class ships simultaneously, will be completed in 2001. The construction of Muan International Airport, with its 2.5-kilometer (1.5 mile-) runway, will be completed in 2002.

A 1 million-square kilometer Foreign Business-exclusive Industrial Zone has been established in the Daebul National Industrial Complex. The zone is specifically intended for joint venture corporations with foreign equity investments of more than 10 percent and wholly owned foreign companies. Qualifying companies will be eligible for a 50 percent subsidy on factory sites. Tax benefits are also available for businesses making investments of more than $30 million in a designated high-tech area and hiring 300 or more employees.