LH Launches 'New Northern Policy', Signs Agreement to Develop Industrial Complex in Russia's Primorsky Krai

On the 18th, Jang Chung-mo, Vice President of LH (left in the photo), signed the implementation agreement for the "Yeonhaeju Korea-Russia Economic Cooperation Industrial Complex" development project at the Ministry of Foreign Affairs building in Jongno-gu, Seoul, and took a commemorative photo with Kim Geon, Deputy Minister of Foreign Affairs (right in the photo). (Provided by LH)

[Asia Economy Reporter Lee Chun-hee] Korea Land and Housing Corporation (LH) is embarking on the development of an industrial complex in Russia's Primorsky Krai as part of the New Northern Policy.

On the 21st, LH announced that it signed a business implementation agreement for the development of the 'Primorsky Krai Korea-Russia Economic Cooperation Industrial Complex (KICP)' with the Russian Far East Development Corporation at the Ministry of Foreign Affairs building in Jongno-gu, Seoul on the 18th. The signing ceremony was held via video conference, with LH Vice President Jang Chung-mo and Russian Far East Development Corporation President Zaprigayev remotely signing the agreement.

KICP is a project to create a 500,000㎡ industrial complex near Vladivostok in Russia's Primorsky Krai under the government's New Northern Policy, supporting the overseas expansion of domestic small and medium-sized enterprises.

After signing a business promotion agreement with the Russian Far East Export Support Agency in February last year and beginning full-scale discussions on development, LH successfully concluded this business implementation agreement following over two years of negotiations with the Russian government, including the Ministry for the Development of the Russian Far East and Arctic, regarding the project structure.

According to the agreement, LH will receive prime state-owned land within the Nadezhdinskaya Advanced Special Economic Zone (ASEZ) in Primorsky Krai from the Russian Far East Development Corporation, develop the industrial complex by installing infrastructure, and supply it to companies. The Advanced Special Economic Zone is a special zone similar to Korea's Free Economic Zones, where the Russian government guarantees various benefits such as low rent and tax incentives to attract investment in the Far East region.

Furthermore, LH and the Far East Development Corporation will form a working-level consultative body with their respective governments to promptly advance the project. They will also prioritize recommending KICP occupancy to Korean companies wishing to settle in the Nadezhdinskaya ASEZ, pooling efforts to activate the industrial complex early.

LH plans to complete investment decision procedures and government funding consultations by early next year and will proceed with full-scale project implementation, including establishing a local corporation in the first half of the year. With a target for occupancy in 2023, LH also plans to support resident companies with local administrative tasks such as permits, legal affairs, and taxation.

In addition, LH signed a new business discovery agreement with Russia's Housing and Urban Development Corporation (DOM.RF) last November and is accelerating the discovery of a second project in Russia by initiating the basic plan for the Bolshoy Kamen Smart City together with the Primorsky Krai government.

LH Vice President Jang Chung-mo stated, "We will do our utmost to create an environment where our companies can invest with confidence," adding, "Building on this project, we will expand our presence in Russia beyond industrial complexes to areas such as smart cities and public housing."

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