Gyeonggi Province Wins Over KRW 100 trillion in Investments
(Published August 01, 2012)

Provincial government inks Godeok Industrial Complex lot purchase agreement with Samsung Electronics, expects KRW 100 trillion in investment and the creation of 30,000 jobs.

◇ Participants in the Godeok Industrial Complex Lot Purchase Contract and Support Signing Ceremony pose for cameras after signing the agreement at the Samsung Electronics Headquarters on July 31st. From the left: National Assembly Member Lee Jae-young, National Assembly Member Won Yoo-chul, Gyeonggi Urban Innovation Corporation President Lee Jai-yeong, Gyeonggi Province Governor Kim Moon-soo, Samsung Electronics Vice Chairman Kwon Oh-hyun, and Pyeongtaek Mayor Kim Seon-gi. ⓒ G-News Plus

Samsung Electronics’ move into the Godeok Industrial Complex of Pyeongtaek City, Gyeoggi Province, has been finalized some nineteen months after the signing of the MOU on December 23rd, 2010.

Gyeonggi Governor Kim Moon-soo and Samsung Electronics Vice Chairman Kwon Oh-hyun signed the Godeok Industrial Complex lot purchase agreement on July 30th at Samsung Electronics’ headquarters with National Assembly Members Won Yu Cheol and Lee Jae-young, Pyeongtaek Mayor Kim Seon-gi, and Gyeonggi Urban Innovation Corporation President Lee Jai-yeong as witnesses.

Under this agreement, Samsung Electronics will invest over KRW 100 trillion in the development of 3,950,000㎡ at the Godeok Industrial Complex including facilities for solar batteries, medical machinery, and other growth sectors as well as a production line for next-generation semiconductors. This is by far the largest investment Samsung has ever made in local production lines, and is expected to generate thirty thousand new jobs.

The lot itself is 2.4 times larger than the complex in Suwon (approx. 1.6 million ㎡) and is expected to cost KRW 1.4 trillion. The Gyeonggi Urban Innovation Corporation will commence construction work this August, aiming for completion by 2015.

Expected to Stimulate Stagnant Domestic Economy

By securing the Godeok Industrial Complex, Samsung Electronics has completed the Suwon, Giheung Yongin, Dongtan Hwaseong, Godeok Pyeongtaek, and Tangjeong Asan high-tech industrial belt. It is also expected to exert considerable influence on the development of the Yellow Sea coast, a national project intended to boost Korea’s competitiveness.

This major project is expected to accelerate the relocation of the US military headquarters to the area and the development of Godeok International City, as well as a number of other major government projects in the pipeline. It might also have a positive influence on Brain City and the Seotan Industrial Complex, projects that have been languishing over the years.

A local government official said, “This investment is a victory for Governor Kim because he has been fighting to keep quality jobs within Korea’s borders. He has dreamed of building a city where work and residence are integrated: it will be a model case.”

The government has plans to develop Godeok New Town into a leading city that integrates working and living spaces through the introduction of new concepts. Soon the city will be much more than a “bed town.”

◇ Governor Kim Moon-soo and Samsung Electronics Vice Chairman Kwon Oh-hyun chat after the ceremony. ⓒ G-News Plus

Efforts to Attract Investment Bears Fruit After Five Years

Gyeonggi Province has made continuous efforts to attract Samsung Electronics’ investment. Soon after the founding of Pyeongtaek Godeok International City in September 2006, the province consulted with the Ministry of Land, Transport & Maritime Affairs twenty-five times. As a result, a 3.9-million-m² lot was designated as an industrial complex within the new city on July 2007. In September of the same year, that same space was specially allotted to industrial facilities.

Since then, Governor Kim has appealed to National Assembly Members Won Yoo-chul and Lee Jae-young, Pyeongtaek City Mayor Kim Seon-gi and other officials of the National Assembly and the central government to find the funding required for essential infrastructure such as roads, irrigation, and water treatment. He also called for twice-weekly meetings with working groups to resolve the problem of noise pollution caused by the KTX trains that pass through the complex.

Consequently, in July of 2007, an exceptional clause to fund the district industrial complex was introduced as part of the Special Law to Fund Pyeongtaek. Plans to fund KRW 561 billion in building the basic infrastructure for the Godeok Industrial Complex were reviewed by the Ministry of Land, Transport, & Maritime Affairs in July of 2011 and accepted in January of 2011. With this, most requirements were finalized.

Signing the Investment MOU to Secure Samsung Electronics’ Investment

Signing the lot purchase agreement is not the end-all of business requirements: government funds must be distributed annually, industrial complex related permits must be processed, and investment errors must be resolved.

Since signing the purchase agreement, Gyeonggi Province, Samsung Electronics, Pyeongtaek City, and the Gyeonggi Urban Innovation Corporation have been working together to address these issues. They have agreed on an investment-funding agreement to open the plant as soon as possible. To that end, they have formed a task force team with a mandate to provide the Godeok Industrial Complex with continuous and organized administrative support.

At the signing ceremony, Governor Kim Moon-soo stated, “The twelve million Gyeonggi Province residents are grateful that the international conglomerate Samsung Electronics has decided to invest not abroad but here in Korea, in our very own Pyeongtaek. We pledge our full support for Samsung Electronics’ success.”

He went on to add, “It is vital we create an environment that welcomes private sector investments despite the global economic crisis. I will continue to do my best to create a business-friendly country.”

ⓒ G-News Plus News | Nam Gyeong-u echo2008f@gg.go.kr

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