Pyeongtaek-Dangjin Port Hinterland Development Begins... Production Induction Effect of 2.4 Trillion Won

First Private Development and Sale Method

[Sejong=Asia Economy Reporter Kwon Haeyoung] The Pyeongtaek-Dangjin Port Hinterland Development Project, which is expected to create 6,500 new jobs and generate a production inducement effect worth 2.4 trillion KRW, is set to commence.

The Ministry of Oceans and Fisheries announced that the "Pyeongtaek-Dangjin Port Phase 2-1 Type 1 Hinterland Development Project," the first of its kind to be developed and sold by the private sector, will begin construction on the 28th.

The port hinterland is a space introduced to transform ports from simple logistics hubs into complex logistics centers incorporating assembly, processing, and manufacturing, in line with the trend of division of labor. Until now, hinterland development projects have been carried out through a public development and leasing method, where the government and port authorities developed the hinterland and then leased the land to private entities. However, this method limited the private sector’s ability to acquire land ownership, restricting the establishment of large-scale manufacturing and logistics facilities in the port hinterland.

The Ministry of Oceans and Fisheries addressed this issue by revising the Port Act in 2016 to create a legal framework allowing the private sector to promote Type 1 port hinterland development, actively attracting private capital centered on domestic and international manufacturing and logistics companies as end users.

The private development and sales method offers advantages from the government’s perspective, as it does not require administrative periods for feasibility studies or consultations with financial authorities to secure funding, enabling faster creation and supply of hinterlands to demanders. For the private sector, the ability to privately own land allows for large-scale facility investments in the hinterland without being constrained by lease contract conditions such as lease period extensions or restoration obligations after land use.

In the case of the Pyeongtaek-Dangjin Port Phase 2-1 Type 1 hinterland development project, private capital of 212.8 billion KRW will be invested over four years from June this year to June 2025 without any government financial support. A total of 1,135,000㎡ of port hinterland will be developed, including 711,000㎡ of complex logistics and manufacturing facilities, 105,000㎡ of office and convenience facilities, and 319,000㎡ of public facilities.

The Ministry of Oceans and Fisheries expects that this project will create approximately 6,500 new jobs and generate a production inducement effect of 2.4 trillion KRW.

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