[Let's Run Again Construction Korea] Up to 1.5 Million ㎡ Economic Cooperation Industrial Complex in Russia's Primorsky Krai... LH Advances 'New Northern Policy' to the North

Yeonhaeju 'Han-Ru Economic Cooperation Industrial Complex (KICP)'
42 Domestic Companies Submit Letters of Intent to Enter
Exploring Export of Korean-Style Smart Cities

On the 18th, Jang Chung-mo, Vice President of LH (left), 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). (Provided by LH)

[Asia Economy Reporter Lee Chun-hee] Korea Land and Housing Corporation (LH) is actively participating in the new Northern Policy. As this year marks over 30 years since the establishment of diplomatic relations between Korea and Russia, LH plans to pursue projects more aggressively.

One of LH's representative new Northern Policy projects is the Korea-Russia Economic Cooperation Industrial Complex (KICP) in Primorsky Krai. To support the overseas expansion of domestic small and medium-sized enterprises, a pilot industrial complex covering 500,000㎡ will be developed near Vladivostok in Primorsky Krai, Russia. The plan is to expand the complex to a total of 1.5 million㎡.

On the 18th, LH signed a business implementation agreement for the development of the Korea-Russia Economic Cooperation Industrial Complex with the Russian Far East Development Corporation at the Ministry of Foreign Affairs building in Jongno-gu, Seoul, officially launching the project. This achievement comes after more than two years of negotiations since signing a business promotion agreement with the Russian Far East Export Support Agency in February last year to discuss the development.

Location Map of the Korea-Russia Economic Cooperation Industrial Complex (KICP) in Primorsky Krai (Provided by LH)

Through this agreement, LH secured prime state-owned land within the Nadezhdinskaya Lead Development Zone (ASEZ) in Primorsky Krai as the site for the industrial complex. It is located just 15 km from Vladivostok International Airport. The Russian government guarantees various benefits such as low rent and tax incentives, similar to Korea's free economic zones, to attract companies to the lead development zone.

LH plans to prioritize recommending KICP occupancy to Korean companies wishing to enter the Russian market to promote early activation. Already, 42 domestic companies have submitted letters of intent to move in.

By early next year, LH aims to complete investment decision procedures and government funding consultations, establish a local corporation within the first half of the year, and put the project on track. The goal is to have companies move in by 2023.

Using the Primorsky Krai industrial complex as a foothold, LH is actively pursuing entry into the Russian market, including exploring the export of Korean-style smart cities (K-City) to Russia.

In January, LH was designated as a project executor along with the Korea Overseas Infrastructure & Urban Development Corporation (KIND) after the Russian Primorsky Krai government's Bolshoy Kamen smart city project was selected for the '2020 K-City Network' global cooperation program announced by the Ministry of Land, Infrastructure and Transport. Subsequently, in July, LH commenced the 'Basic Plan Study for the Bolshoy Kamen Smart City in Primorsky Krai, Russia.'

The Bolshoy Kamen area is located 40 km east of Vladivostok. It hosts the Zvezda Shipyard, the largest shipyard in Russia, where many leading Korean shipbuilding companies such as Hyundai Heavy Industries, Samsung Heavy Industries, and Daewoo Shipbuilding & Marine Engineering have established a presence. The Russian government is heavily investing in development, with President Vladimir Putin visiting annually, indicating high potential for future growth. LH plans to actively utilize its domestic smart city development experience to establish a basic plan and business execution strategy for creating a smart city based on the shipbuilding industry.

Additionally, LH is laying the groundwork to discover new cooperation projects under the new Northern Policy by signing a memorandum of understanding (MOU) last September with the Korea Marine Equipment Association (KOMEA) to develop a Russian shipbuilding and fisheries industrial complex.

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