Southeastern Industrial Province Wins Presidential Award for Foreign Investment
By Na Jeong-ju Staff Reporter - Korea times-
Gyeongsangbuk-do (North Kyongsang Province), regarded as a center of Korea’s industrial growth, received the Presidential Award yesterday for its distinguished role in drawing foreign investments and making Korea a more business-friendly country.
Despite less favorable business conditions than the capital area, Gyeongsangbuk-do saw export and investment by firms based in the region increase by 43 percent and 23 percent, respectively, this year, ranking top among the 16 local governments.
The province attracted about 700 million in foreign investments for the first half of this year, including 400 million from Toray, a Japanese chemical and textile firm, and 260 million from Asahi Glass, a Japanese automobile glass manufacturer. Also, many Korean companies, such as Daelim Industrial Company and Hyundai Heavy Industries, invested a total of 1.3 trillion won (1.13 billion) in the province in the first half as it introduced various tax benefits and administrative support measures for investors.
Gyeongsangbuk-do officials say developments in machinery, metals and electronics industries led the growth recently. The home for six national industrial complexes, 25 local industrial complexes and 53 regional industrial complexes, Gyeonsangbuk-do has continued to build its industrial capacity by introducing reat measures to boost business activities in the region, they said.
The area, where some 4 million people reside, has huge potential in the consumer market and the structure and size of the industries are quite healthy, becoming an attractive investment place for both foreign and local businesses.
Numerous foreign firm, including Philips, Hitachi, Owens Corning, Asahi Glass, Coors Tec, Dupont and P&G, have established offices in the province and are creating jobs for local residents.
As provincial governments place high importance on foreign direct investment (FDI) to boost the local economy, the government expects FDI to reach 11 billion this year, up 70 percent from last year.
Gyeongsangbuk-do has been the most active player in drawing foreign investment with governor Lee Eui-gun setting foreign investment as one of the key items on the province agenda.
Behind the foreign firms’ rush to the province are attractive incentives. High-tech businesses can rent the factories for free for 50 years and other manufacturing businesses can rent them for as low as 0.9 per square meter per year. Various start-up packages and support systems are being provided to help the newcomers achieve stability in managerial activities and competitiveness enforcement process.
Also, it offers tax breaks for seven years and tax exemption for 15 years to high-tech business and businesses locating in foreign investment zones to boost investments, along with grants and subsidies for employment, training, and land purchase for certain firms.
Access to a skilled workforce is another merit for companies based in the province. Every year, 30,000 students graduate from 39 universities and junior colleges in the province, thus allowing firms to secure top-notch personnel with relative ease, according to Gyeongsangbuk-do officials.
To boost the province’s industrial competitive edge, the province has begun to foster Pohang as a hub of nano technology, Gumi as a hub of ination technology and electronics parts and the northern region as a hub of biology technology and marine industries. These efforts have been recognized by global firms as more than 30 firms have signed agreements with local authorities for strategic alliance.
With direct access to the rapidly growing markets of the Asia Pacific, Gyeonsangbuk-do offers special advantages for global businesses searching for strategic investment locations as it is located in the center of the Asian business environment with efficient logistics system.
Major cities in South Korea can be reached within two hours by the express train KTX, within an hour by air, and all the major industrial cities lie between two and four hours by car. Regional highway bus lines and a regular train system supplement the KTX and airline connections across the nation and between countries.
Three airports _ Daegu International Airport, Yecheon Airport, and Pohang Airport _ easily connect the province to cities in Japan, China, Russia, and all Asian Pacific countries, as well as Hong Kong and Singapore, while Uljin Domestic Airport is preparing to open.
Seven railroad lines connect the province to the rest of the country and will be linked to the Trans-Siberia Railway and Trans-China Railway. Since the bullet train has started its smooth operation, Kimchon, Kumi, Taegu and Kyongju have become more busy in its cultural and economic activities, according to the province.
The province’s road network stretches to a total of 10,484 km while Kyongbu, Chungang and Chungbu Inland Expressways all run through the province and also to the most area of the country. Three additional expressways are under construction.
The annual cargo handling capacity of Gyeongsangbuk-do will reach 76 million tons. Pohang Port, one of the major shipping hubs of the Asia Pacific, handles 44 million tons of cargo per year with its 44 berths. The construction of Young-Il Bay Port is to be completed in 2011.
The Nakdong River, the longest river in Korea, runs through the province, allowing 2,190,000 tons of water storage in six industrial and agricultural dams. The produces 54,004,033 mega kilowatts per year, which is enough for mass consumption in industrial complexes, from eight nuclear power stations and two hyower plants. Electricity prices are lower than any other region in the world, according to Korea Electric Power Corporation surveys
At the center of the dynamic economic growth are two industrial complexes in Gumi and Waegwan.
Gumi has strengthened its position since the opening of the country’s new era of ination and technology and electronics industries. Gumi is actively developing a foreigner-exclusive industrial complex to provide cutting-edge technology and consumer market ination. This plan is expected to solidify Gumi’s position as a leading digital city of the 21st century.
Spanning over 167,347 square meters, about 600 high-tech, IT and manufacturing firms have factories and research centers in Gumi. Rental fees are fully exempted for high-tech companies and 75 percent of rental fees are reduced for a firm that invests more than 1 million in the area. Gumi has various advantages, such as well-organized infrastructure, highly trained manpower and superb industrial atmosphere, Gyeongsangbuk-do said
Waegwan, located between Gumi and Taegu, is emerging as a new industrial place due to its geocentric advantage. Waegwan is preparing for the era of environment-friendly hi-tech industries by developing the first industrial complex in the region. Gyeongsangbuk-do is providing various incentives for both local and foreign firms so that new businesses and existing enterprises can realize mutual benefits.
Hundreds of textiles, clothing, assembly metals machinery firms are expected to set up offices in Waegwan, Gyeongsangbuk-do said.
