LH to Begin Construction of Korea-Myanmar Economic Cooperation Industrial Complex Within This Year

Aerial view of Myanmar 'Korea-Myanmar Industrial Complex' (KMIC) (Provided by LH).jpg

[Asia Economy Reporter Lee Chun-hee] Korea Land and Housing Corporation (LH) is accelerating preparations for the full-scale groundbreaking of the 'Korea-Myanmar Economic Cooperation Industrial Complex' (KMIC) being promoted in Myanmar. LH plans to commence construction within this year.

On the 11th, LH announced that it had signed a contract worth 29.5 billion KRW for the first phase of development work related to KMIC and issued a pre-reservation notice for 71 industrial land plots totaling 880,000㎡.

KMIC is the first overseas industrial complex led by LH. It is being developed on a 2.25 million㎡ site in the Yaungnypin area, located 10 km north of Yangon, Myanmar's largest city. The project is being promoted through a joint venture with LH holding 40%, the Myanmar government 40%, and Global Sea 20%.

The KMIC joint venture issued a bid notice on October 1 for the first phase project area of 1.27 million㎡ to begin full-scale industrial complex development. After evaluations including technical proposals and bid price assessments, a contract worth 29.5 billion KRW for the KMIC first phase development was signed with the Gyeryong Construction-Sea STX Entech consortium.

In particular, LH presented Korean-style bidding conditions and construction standards in selecting the contractor, laying the foundation for domestic companies to smoothly enter overseas markets. For the upcoming second phase construction, as well as orders for wastewater treatment facilities, landscaping, and electrical and communication works, LH plans to prepare various measures to establish a co-growth platform with domestic companies.

Location map of Myanmar 'Korea-Myanmar Industrial Complex' (KMIC) (Provided by LH)

Meanwhile, LH is also implementing a 'land pre-reservation notice' for 71 industrial land plots totaling 880,000㎡ in the first phase development area to alleviate the initial financial burden and facilitate preliminary preparations for companies wishing to expand overseas.

The pre-reservation land will be supplied on a first-come, first-served basis through internet applications starting January 20 next year, marking the first such method in Myanmar. In case of competition, the selection will be based on the recommended industry for each plot and the order of companies that have paid the pre-reservation deposit of 5,000 USD (approximately 5.44 million KRW) first.

After signing the pre-reservation contract, companies that complete local corporation establishment, environmental impact assessments, and obtain investment approval from the Myanmar Investment Commission will proceed with the main contract by the end of next year. The supply price averages 72.38 USD per ㎡ (approximately 79,000 KRW), with payment terms of 10% deposit upon contract signing, 75% interim payments (15% every four months), and 15% balance.

KMIC is scheduled to break ground within this year. Inquiries about construction progress and supply can be made through the LH Myanmar Business Group and the KMIC joint venture.

Lee Yong-sam, Head of LH Global Business Headquarters, said, "As the Korea-Myanmar economic cooperation project is now on track, we will do our best to support domestic companies' overseas expansion by strengthening the cooperation channel between 'One Team Korea' and the Myanmar government to facilitate companies' local settlement and convenience."

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