Groundbreaking of 5.7 Trillion Won 'Urban High-Tech Logistics Complex' in Yangjaedong in 2021

Actively Discovering 100 Trillion Investment Projects... Supporting Execution of 8 Planned Projects to Start Construction Within the Year

Bang Gi-seon, Deputy Minister for Planning and Coordination at the Ministry of Economy and Finance (third from the left), is giving a detailed preliminary briefing on the economic policy direction for the second half of 2020 at the Government Complex Sejong on the 29th of last month.

[Asia Economy Reporter Kwangho Lee] The government is pushing forward with the groundbreaking of the Yangjae Urban High-Tech Logistics Complex in Yangjae-dong, Seocho-gu, Seoul. Additionally, an e-commerce logistics center will be established in Gwangju, Jeollanam-do, and an export food production factory will be built in Miryang, Gyeongsangnam-do.

The 'Second Half of 2020 Economic Policy Direction' jointly announced by government ministries on the 1st included the discovery and promotion of a '100 trillion KRW investment project involving private, private-public partnership, and public sectors' with these details.

The government has completed the discovery of projects worth 13 trillion KRW out of the 25 trillion KRW private investment target and plans to additionally discover large-scale corporate investment projects worth 12 trillion KRW in the second half of the year for rapid promotion.

In particular, projects worth 6.2 trillion KRW will receive support to resolve investment difficulties and simplify administrative procedures to enable groundbreaking by the end of this year or next year.

The largest project is the Yangjae Urban High-Tech Logistics Complex development project, which involves the complex development of a logistics terminal, warehouses, distribution markets, and research and development (R&D) facilities on the former Korea Truck Terminal site. An investment of 5.7 trillion KRW will be made.

The government plans to start the development plan review in the second half of this year and enable groundbreaking next year.

Bang Gi-seon, Deputy Minister of Strategy and Finance, explained in a preliminary briefing, "The Yangjae Urban High-Tech Logistics Complex has been promoted since 2015, but negotiations between local governments and companies were prolonged, causing delays. The government will actively mediate to ensure groundbreaking next year."

The government will also support the groundbreaking in the second half of this year for the Gwangju e-commerce logistics center (200 billion KRW) and the Miryang export food production factory (200 billion KRW) by simplifying procedures for changing industrial facility sites and revising industrial complex sector placement plans.

The expansion of the liquefied natural gas (LNG) storage facility for import and export in Yeosu, Jeollanam-do (100 billion KRW), will also be promoted for groundbreaking next year by supporting pre-approval procedures for additional storage facility construction.

Furthermore, the government will actively resolve additional difficulties for eight projects worth a total of 9.8 trillion KRW scheduled for groundbreaking within the year, including the Seoul Samseong-dong Global Business Center (GBC), Pohang Yeongilman factory, Incheon complex shopping mall, Yeosu petrochemical plant, Yeosu LNG terminal, Seoul Changdong K-POP performance hall, Pohang secondary battery material factory, and Incheon global e-commerce logistics center.

Out of the 15 trillion KRW private investment target, 5.2 trillion KRW scheduled for execution this year will be completed in the second half. Economic feasibility analysis for projects worth 5 trillion KRW will be completed soon.

The remaining 5 trillion KRW projects will be discovered and promoted through institutional improvements and exemptions from private investment eligibility investigations. These include essential industrial infrastructure such as buffer storage facilities (2 trillion KRW), investment in upgrading aging environmental facilities (1.5 trillion KRW), and new private investments such as the Busan New Port ship repair complex (900 billion KRW).

The government also plans to execute the remaining portion of the 60.5 trillion KRW public institution investment target in the second half of the year. As of April, 18.2 trillion KRW has been executed.

This content was produced with the assistance of AI translation services.