[Let's Run Again Construction Korea] Developing 2.25 Million㎡ Gyeonghyup Industrial Complex... LH Leads 'Myanmar's Han River Miracle'

LH Leads Korea-Myanmar Economic Cooperation Industrial Complex Development
Excellent Airport-Adjacent Transportation and Logistics Accessibility
Supports Local Entry by Building Infrastructure for SMEs

Industrial Complex Development Near Hanoi, Vietnam
Expected Synergy with LG Haiphong Factory Nearby

Moon Jae-in Government's New Southern Policy Success Model

In September last year, President Moon Jae-in, on a state visit to Myanmar, participated in a water sprinkling ceremony praying for safety at the groundbreaking ceremony and business forum for the Korea-Myanmar Economic Cooperation Industrial Complex held at the Yangon Lotte Hotel. From left to right: Kim Woong-ki, Chairman of SeAH; Byun Chang-heum, former President of Korea Land & Housing Corporation (LH); President Moon; U Myint Swe, Vice President of Myanmar; U Han Cho, Minister of Construction of Myanmar; and Phyo Min Thein, Governor of Yangon Region, Myanmar. / Photo by Cheong Wa Dae Press Photographers

[Asia Economy Reporter Lee Chun-hee] The 'Ayeyarwady River,' known as the Han River of Myanmar, is the site where the 'Korea-Myanmar Economic Cooperation Industrial Complex (KMIC)' is being developed. As the name suggests, Korea and Myanmar are joining hands to recreate the miracle of the Han River in Myanmar. This background is reflected in President Moon Jae-in's remarks at the KMIC groundbreaking ceremony last September, where he said, "Just as Korea created the miracle of the Han River through economic growth, I hope this will be a stepping stone to creating a miracle for the lifeline of Myanmar, the Ayeyarwady River."

LH Lays the Foundation for the 'Miracle of the Ayeyarwady River' through KMIC

Bird's-eye view of Myanmar 'Korea-Myanmar Industrial Complex (KIMC)' (Provided by LH)

Korea Land and Housing Corporation (LH) is developing the Korea-Myanmar Economic Cooperation Industrial Complex on a 2,249,000㎡ site in Yawnghwepin, Yangon Region, Myanmar. This is the first industrial complex led by LH and part of the current government's 'New Southern Policy.'

Expectations for the Korea-Myanmar Economic Cooperation Industrial Complex are high locally as well. With a nearby population of 800,000, there is abundant labor supply, and its proximity to Yangon International Airport and port offers excellent transportation and logistics accessibility. It is also only 34 km away from the Htatawadi New Airport, which the Myanmar government is promoting.

To advance this project, LH has maintained cooperative relationships with relevant Myanmar agencies. In August last year, LH signed an agreement in Naypyidaw, Myanmar's capital, with the Myanmar Ministry of Construction's Department of Urban and Housing Development (DUDH) and domestic company Global Sea to establish a joint venture (JV). In September, the groundbreaking ceremony was held with high praise as the first achievement of the New Southern Policy, attended by President Moon and Myanmar Vice President U Myint Swe.

Subsequently, KMIC Development, a joint venture company (JVC) invested by LH (40%), Myanmar Ministry of Construction (40%), and Global Sea (20%), was launched to implement the project. The goal is to complete sales by 2024, with a total project cost of 131.1 billion KRW, including 100.6 billion KRW for construction and 12.9 billion KRW for land costs.

LH has recently accelerated the project by signing a 29.5 billion KRW contract for the first phase of development. The first phase, planned over 1.27 million㎡, has a construction contract signed with the Gyeryong Construction and Sea STX Entech consortium. The groundbreaking ceremony was held on the 24th, with plans to complete the industrial complex by 2022. Notably, in selecting the contractor, Korean-style bidding conditions and construction standards were introduced, laying the groundwork for domestic companies to smoothly enter overseas markets.

To alleviate the initial financial burden and facilitate preparation for companies wishing to expand overseas, a 'land pre-reservation announcement' will be implemented for 71 industrial land plots totaling 880,000㎡ in the first phase development area. Starting January 20 next year, land plots will be allocated on a first-come, first-served basis via online applications, marking the first such system in Myanmar.

LH has also devised plans for long-term stable operation after KMIC's development. Implemented on a government-to-government (G2G) basis with the Myanmar government, this will enable domestic companies to operate stably over the long term without ownership disputes, even in Myanmar where land ownership verification is difficult. To allow companies to focus on production activities, KMIC will directly provide key industrial complex infrastructure such as access roads, water supply, electricity, power, and telecommunications, actively supporting small and medium-sized enterprises that find overseas expansion challenging on their own.

An LH official said, "Thanks to active support, 132 companies interested in entering Myanmar or relocating within Myanmar participated in the online investment briefing held last September, showing strong interest despite the spread of COVID-19."

LH Expands into Southeast Asia

Aerial View of Korea-Vietnam Economic Cooperation Industrial Complex (Provided by LH)

Besides Myanmar, LH is actively expanding its business throughout Southeast Asia. Due to the prolonged US-China trade war and changes in the global value chain (GVC) caused by the COVID-19 pandemic, many global companies are considering relocating production bases, and LH is promoting industrial complex development in Vietnam following Myanmar.

In fact, LH is advancing the Korea-Vietnam Economic Cooperation Industrial Complex in Hong Yen Province, Vietnam. A clean industrial complex of 1.43 million㎡ is currently underway about 30 km southeast of Hanoi, with plans to gradually develop Industrial Complex Zone 1 (2.64 million㎡) and urban areas. A joint venture company formed by an LH consortium, scheduled to be established in the first half of next year, and Vietnam's TDH Ecoland will implement the project, which is a very long-term project with final company liquidation planned for 2070.

Notably, the Korea-Vietnam Economic Cooperation Industrial Complex gained high popularity after LH recruited tenant companies in June, securing letters of intent exceeding 150% of the supply area and occupancy commitments at about 97%.

The popularity is reportedly due to the geographical advantage of being only 57 km from LG Group's largest production base in Vietnam, the Haiphong factory. LH plans to provide a separate zone within the industrial complex for electronic component suppliers, minimizing interference from other industries and fostering synergy through smooth exchanges among tenant companies.

In Vietnam, LH is also diversifying its business beyond industrial complexes to include K-Smart Cities and social housing. Through joint investments with the Korea Overseas Infrastructure & Urban Development Corporation (KIND) and domestic and international private companies, LH is promoting a social housing complex of about 500,000㎡ in the Cobi area near downtown Hanoi. This project was included in the agenda of last year's Korea-ASEAN Special Summit and is being promoted as a major cooperation project in the urban housing sector between Korea and Vietnam.

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