Regulations will be eased for investors and companies investing in the Saemangeum development project, a 400-square-kilometer swathe of reclaimed tidal flats in the southwestern part of Korea. The government will also soon streamline investment procedures at the special economic zone.
These efforts are part of the revision of a special law for the development of the tidal flat economic zone which was recently passed by the National Assembly.
The government will partially ease employment regulations in order to encourage foreign direct investors to invest in the Saemangeum development project. Employment regulations will be the same as those imposed on foreign firms operating in Korea's free economic zones (FEZs). International companies operating in the Saemangeum area will be exempt from some compulsory employment regulations, such as the preferential hiring of people with national merit and employment support for war veterans, which will lower the burdens faced by the companies.
The revised law also creates legal ground to provide direct funding to both foreign investors and companies. In the past, local government organizations provided funds for foreign investors and received subsidies from the central government. Thanks to the revision, however, in the future it will be the Saemangeum Development Agency that directly handles negotiations and funding for foreign investors.
The revised law introduces a new system for foreigner-only casinos, which need a large amount of capital in order to open. Under the new law, foreign investors can be screened by the Minister of Culture, Sports and Tourism before making an application for official permission to open a casino, which will reduce some uncertainties surrounding their investment.
In addition, requirements for business operators will be eased. In the past, the required qualifications for a new business were strictly prescribed, which hindered small- and medium-sized enterprises from participating in such trade zones. The revised law, however, allows the participation of such businesses as they can now form a special purpose company (SPC) in the Saemangeum development zone.
Finally, land categorization at the Saemangeum project will also be simplified, in order to be more flexible in attracting investment. In the past, the Saemangeum tidal flats were categorized into about ten subcategories according to purpose, such as for farming, industry, science or research. The new law has integrated such categories, halving the number of subdivisions, and now includes farming, industry or research, tourism and leisure purposes.
By Yoon Sojung
Korea.net Staff Writer
Photos: Saemangeum Development Agency
arete@korea.kr
These efforts are part of the revision of a special law for the development of the tidal flat economic zone which was recently passed by the National Assembly.
The government will partially ease employment regulations in order to encourage foreign direct investors to invest in the Saemangeum development project. Employment regulations will be the same as those imposed on foreign firms operating in Korea's free economic zones (FEZs). International companies operating in the Saemangeum area will be exempt from some compulsory employment regulations, such as the preferential hiring of people with national merit and employment support for war veterans, which will lower the burdens faced by the companies.
The revised law also creates legal ground to provide direct funding to both foreign investors and companies. In the past, local government organizations provided funds for foreign investors and received subsidies from the central government. Thanks to the revision, however, in the future it will be the Saemangeum Development Agency that directly handles negotiations and funding for foreign investors.
The revised law introduces a new system for foreigner-only casinos, which need a large amount of capital in order to open. Under the new law, foreign investors can be screened by the Minister of Culture, Sports and Tourism before making an application for official permission to open a casino, which will reduce some uncertainties surrounding their investment.
The Saemangeum development project is a state-funded land reclamation project. It includes infrastructure, such as ports and roads, and covers an area of 283 square kilometers. It was created by reclaiming the mud flats that stretch between Gunsan, Gimje and Buan in Jeollabuk-do (North Jeolla Province). The Saemangeum tidal flats are located in the center of the greater Yellow Sea area. This is a strategic point that can reach cities in China, Japan and Eurasia within three hours by plane. The above photo shows the Saemangeum Seawall that defines the project. This 33.9-kilometer dyke is the largest seawall of its kind in the world.
A view of the Gogunsangundo Islands, adjacent to the Saemangeum Seawall.
In addition, requirements for business operators will be eased. In the past, the required qualifications for a new business were strictly prescribed, which hindered small- and medium-sized enterprises from participating in such trade zones. The revised law, however, allows the participation of such businesses as they can now form a special purpose company (SPC) in the Saemangeum development zone.
Finally, land categorization at the Saemangeum project will also be simplified, in order to be more flexible in attracting investment. In the past, the Saemangeum tidal flats were categorized into about ten subcategories according to purpose, such as for farming, industry, science or research. The new law has integrated such categories, halving the number of subdivisions, and now includes farming, industry or research, tourism and leisure purposes.
By Yoon Sojung
Korea.net Staff Writer
Photos: Saemangeum Development Agency
arete@korea.kr