About 200,000 pyeong of land in Pyongtaek Industrial Complex and Poseung Industrial Complex was specified as a rental zone for foreign enterprises.

Thereupon, local drifts of foreign LCD enterprise and auto parts companies are expected to move industriously within the area.

On Mar. 29, the provincial government announced that 160,000 pyeong of Hyeongok Industrial Complex and 34,000 pyeong of Poseung Industrial Complex are virtually property to be at lease to foreign enterprises and only formal procedures are left to finalize the matter.

Funding of the real estate (100 billion won) was provided by the Ministry of Commerce, Industry and Energy (MOCIE; 40 billion won), and the Gyeonggi-do government (60 billion won). Foreign enterprises moving in may only pay off a low rental value of 0.5~1% of the land value and use the land for up to 50 years.

Up to now, MOCIE has financially supported 40% of land value for foreign investment companies determined to move in, but now MOCIE decided to support a total of 40 billion won for the whole land, taking the burden of the shoulders of administrative companies of the industrial complexes.

Already 6 LCD component enterprises including HOYA and 4 auto parts enterprises plans to invest a total of 350 million dollars in both Pyongtaek and Poseung Industrial Complex and a Swiss auto parts company, Balzers plans to move in and invest 20 million dollars.

In addition, TI Automotive from England are expecting their factory to be completed till late this year in Poseung.

An official of the Gyeonggi-do government says that MOCIE’s funding of 40% of total land value is very appealing for foreign investment enterprises. Being near other other complexes such as Paju LG-Philips, Giheung and Asan Samsung, LCD and automobile component residents are expected to become buoyant.

Source: Kyeongin Ilbo, March 30, 2004