Only 10 km away from the cease-fire line on March 18, 10:30, the acting interim President Goh Kun, the provincial governor of Gyeonggi-do, Sohn Hak-kyu and all other personnel staff from in and out of Korea and Paju residents have gathered in Wollong, Paju to attend the opening ceremony of the world’s largest high-tech factory.

Acting President Goh Kun has expressed his appreciation and encouragement to related officials for their efforts to materializing the construction of the LG.Philips LCD plant and also remarked the government’s task to improve related regulations to attract more foreign investment enterprises.

Provincial governor Sohn Hak-kyu gave his words of gratitude towards related officials for their toil of fulfill preparations within a year after the conclusion of the MOU (memorandum of understanding) through his address.

The ceremony for the commencement of construction was moved up three months from the actual date agreed on the MOU concluded Feb. 2 last year. This established a record of starting construction of a 500 thousand pyeong industrial complex within 13 months and is viewed to be an excellent precedent for future foreign investment and creating new industrial complexes.

Preparations for constructing an industrial complex usually takes about 4 years but the reason for the 1-year preparation is because of the importance of the TFT-LCD industry from a national point of view. In alarm of the impact the Korean economy may undergo if this major project of LG.Philips LCD may move to another country, the Korean government instantly approved metropolitan regulations and established a comprehensive cooperation system between central organs, enforcement organs (Gyeonggi Innovation Corporation) and related parties.

Starting with the groundbreaking ceremony, incidental facilities related with the first phase of 7 generation TFT-LCD production facilities will be built until the end of the following year and actual production will start in 2006. Infra facilities for electrical power, water, roads, gas and other necessities will be completed 1 year earlier than expected in June 2005.

Korea occupies about 45% of the world TFT-LCD market but been importing about 60% of total main parts and equipment required for manufacturing from Japan and other countries. Additional industrial complexes are overlooked to attract Japanese enterprises and also localize related industries.

When the first plant of LG.Philips LCD starts operation in 2006, annual numerals are expected to achieve 3 trillion in sales and also 95% of total sales to be by export. Earnings on millions of local taxes and employment of about 5 thousand (10 thousand until 2008) will greatly contribute to activate local economy.

Moreover locating major foreign investment enterprise in the borderland near the truce line will solve the apprehensions of foreign investors and hereafter form opportunities to promote investments. If the Paju area succeeds to develop into a strategic point of human and physical interchange between both Koreas, then it will also become the center of overall activities between the North and South.

An official from the Gyeonggi-do government mentioned that the other meaning of the LG.Philips LCD plant construction is the world’s first industrial cluster of display compliances.