ΆΓ  [Kyonggi Province] Pyongtaek Emerging as Prime Opportunity

Korea Times 2000.12.27

There are many exciting business and investment opportunities in Kyonggi Province, and none more so than the development of Pyongtaek and its international port.

``With its strategic geographical location, Pyongtaek has the potential to emerge as a central city on the rim of the Yellow Sea in the 21st century,'' said one city investment official.

Like Kyonggi Province itself, Pyongtaek is located within 80 kilometers of all major cities in the vicinity, and has the full potential to provide industrial support functions to numerous commercial and industrial districts.

The most important aspect of the development project is easily the construction of the Pyongtaek International Port, which is generally regarded as the optimal site in Korea for port construction.

Safety tucked away in Asan Bay, the site of the port is well protected against typhoons and tidal waves, and thus can be accessed at all times of the day.

``The port is located no more than 25 kilometers away from a railway station and other means of transportation are plentiful, thus enhancing its importance as a potential hub for all types of industrial transportation,'' the official said.

As it is, the port is surrounded by scores of industrial plants, which house large companies that produce everything from steel and automobiles to electronics and chemicals.

Naturally, the construction of the port does not come cheap. Initial construction actually began way back in 1989 but has been gaining momentum, especially with the strong interest from potential foreign investors.

Most of the nearly 30 trillion won will be dispersed between now and 2011, when all 62 berths will be in full operation and 62 million tons of cargo will be handled every year.

``This is an excellent opportunity for foreign investors to make a long- term commitment to a project that is certain to produce returns for decades to come,'' the investment official said.

Kyonggi Province and the city welcomes direct equity investment as well as the establishment of special purpose and project companies to participate in the exciting development project.

According to initial calculations by the provincial administration, $5442 million can be returned at a discount rate of 10 percent, except for the initial investments.

``With an estimated payback period of 13 years, we are projecting an internal rate of return of 17.72 percent,'' one KyonggiProvince investment official in charge of the project explained.

Among other things, the port, which will be a duty-free zone centering around the Posung Industrial Complex, will be directly connected to the West Coast Highway, and a specific plan is in place to facilitate the transfer of goods from the port to the Kyongbu Industrial railroad.

``In addition to making specific investments, they will have the opportunity to maximize and expand their investments and profits by developing subsidiary and support facilities,'' the official said.

At the same time, the operation of international shipping and passenger routes linking Pyongtaek with Roncheng and Dalian will begin as early as June next year.