ΆΓ [Kyonggi Province] Kyonggi Province's Ambitious Development Projects
      - From Theme Parks to Golf Courses-

Korea Times 2000.12.27

While the obvious attraction to Kyonggi Province is certainly the industrial and business aspects, there are numerous other opportunities that await foreign investment.

For instance, 24.4 percent of tourists that come to Korea head out to theme parks but the reality is that there are only five in the capital district despite the annual growth of 7.1 percent over the past five years.

With the concentration of theme parks in close proximity to Seoul, there is a lack of such facilities in the northern and southwestern parts, thus making investments in these areas very attractive.

At present, Suwon is planning the construction of a multimedia theme park and foreign and domestic investors are being encouraged to invest in these projects.

In the case of accommodation facilities, which there is an acute shortage of as Korea prepares for such international events as the World Cup 2002, there is an absolute necessity for more deluxe hotels as well as those located within resort towns and golf courses.

In this connection, investments in sporting facilities, which obviously need hotels and condominiums, are exceptionally attractive in KyonggiProvince with the rapid increase in the number of skiers and golfers.

Since the 1990s, the demand for resort facilities has been increasing at a rate of 14.3 percent with the number of those flocking to the ski slopes rising by as much as 20 percent.

In addition to the increase in domestic demand, a rising number of enthusiasts from Taiwan, Hong Kong and Southeast Asia are heading to the slopes of Kyonggi Province to enjoy the jewel of winter sports.

For foreign investors, there are numerous options, including the construction of ski slopes within resort towns, or selecting sites for natural and artificial ski facilities.

On the other hand, there has also been a steady increase in the golfing population, reaching 7 million at the end of 1998 for an annual increase of over 10 percent since 1990.

With the central government encouraging the sports _ it is considering offering tax incentives for those who build or operate nine-hole public courses, recognizing them as facilities for the general public _ and this makes it the perfect time to plan investments in this field.

At the same time, the Kyonggi Province administration is recommending the acquisition of popular golf courses in the region for foreign investment while arranging for partnerships with local operators.

In the commercial area, the change in the shopping pattern of Korean consumers is giving a major boost to facilities where families can shop and enjoy leisure activities all in one location.

With the liberalization of the real estate market in the aftermath of the financial crisis, and rapid deregulation in financial policies, there are huge opportunities for the construction of large-scale shopping malls and discount outlets.

In fact, large distribution companies like Makro, Wal-Mart, Carrefour and Promodes are rushing to construct such facilities in all parts of Kyonggi Province. This is another area where foreign investors can reap gains by establishing partnerships with local companies.

As for real estate, the prices of land and properties have fallen drastically, by as much as 40 percent between 1997 and 1999, and market liberalization is making it possible for foreign investors to enter any segment of the market.

At the same time, the Korean government has been making concerted efforts to induce private capital for infrastructure projects, guaranteeing profits from the projects and helping to reduce risks from foreign exchange fluctuations.

With more than 40 percent of the nation's transport operations concentrated in and around Seoul, the stronghold of Kyonggi Province, the attraction to investments in the construction of ports, light railways, bridges and waste and wastewater treatment facilities is enormous.

jakenho@koreatimes.co.kr