"Companies Flock, Land Sale Rate Hits 90%"... Saemangeum Transformed Completely in 2 Years

Investment Attraction Scale Jumps from 1.5 Trillion Won to 10.1 Trillion Won
Land Sale Rate at 90%... Creation of 10,000 Jobs
Corporate and Income Tax Exemptions for 3 Years for Resident Companies
Saemangeumcheong One-Stop Support Center Assists Companies with Complex Administrative Procedures

"Two years ago, there were many vacant lands with no companies willing to move in. Currently, the sales rate is about 90%, and inquiries about moving into the land to be sold this October are pouring in. Saemangeum is changing now." (Kim Gyeongan, Administrator of Saemangeum Development Agency)

Photo of Saemangeum Development and Investment Agency visited on the 8th.
[Photo by Park Seung-wook]

Saemangeum Industrial Complex, Investment Attraction Scale from 1.5 Trillion KRW to 10.1 Trillion KRW... Advantages Include Tax Benefits and SOC

On the 8th, at the Saemangeum Development Agency in Gunsan, Jeollabuk-do, officials unanimously agreed that the Saemangeum National Industrial Complex has rapidly changed over the past two years. Since the Saemangeum Development Agency opened, the scale of investment attraction, which had been only 1.5 trillion KRW over 8 years and 5 months, began to increase from May 2022 and has grown to 10.1 trillion KRW over 19 months.

The Saemangeum Industrial Complex consists of a total of 9 sections, covering an area of 18.5㎢, with plans to complete development by 2030. Among these, 90% of the land in sections 1, 2, 5, and 6 has been sold, with some factories already operating and others under design. Sections 3, 7, and 8, due to high corporate demand, have advanced their reclamation by more than a year and will begin sales from this October. Sections 4 and 9 will schedule sales after reclamation is completed. The area is expected to transform into an industrial complex by 2030.

As benefits for resident companies have increased, more companies are coming to Saemangeum. Administrator Kim said, "Resident companies are exempt from corporate tax and income tax for three years after moving in, and then receive a 50% reduction in corporate and income tax for the following two years." He added, "To reduce the burden of going through permits and procedures with the Ministry of Trade, Industry and Energy, the Ministry of Land, Infrastructure and Transport, and local governments, we have established a one-stop support center that handles all these procedures." Additionally, the presence or planned development of social overhead capital (SOC) such as railroads, roads, and ports is also cited as an advantage.

Photo of the meeting held on the 8th at the Saemangeum Development Agency, inviting companies scheduled to move into the Saemangeum National Industrial Complex.
[Photo by Park Seung-wook]

The power supply system essential for operating resident factories has also been completed. Typically, when a large-scale industrial complex is established, power consumption rapidly increases, causing difficulties in power supply. The Saemangeum Development Agency reported that they negotiated with Korea Electric Power Corporation to advance the completion of power supply facilities such as substations and high-voltage equipment from 2028 to 2026. This is a measure to build the power supply network in advance to ensure smooth power supply in response to increasing power demand.

Commuter buses for workers traveling to and from work are also operating in the Saemangeum Industrial Complex. According to the Saemangeum Development Agency, the 10.1 trillion KRW investment attraction is expected to create about 10,000 jobs. As jobs increase in the industrial complex, commuting demand also rises. The Saemangeum Development Agency supports commuter buses running between Jeonju, Iksan, and Gunsan for resident companies to meet this demand. Administrator Kim said, "Saemangeum Industrial Complex is the first industrial complex to receive government budget support for commuter buses," and added, "As the number of resident companies increases, we plan to expand commuter bus operations."

"The Most Important Factor for Export Companies is the Port"... Saemangeum New Port Budget Increased from 40 Billion KRW to 160 Billion KRW

At the Saemangeum resident company meeting held that day, company representatives expressed high expectations for the Saemangeum New Port. Kim Minyong, CEO of Eco & Dream, said, "We are moving into the Saemangeum Industrial Complex and will start production from March next year, and the most important thing at that time is the port," adding, "From the perspective of export companies, the establishment of Saemangeum New Port is the most anticipated." In response, Administrator Kim said, "The budget for Saemangeum New Port was 40 billion KRW, but due to recent high corporate demand, the budget has increased to 160 billion KRW. It will be completed by the end of next year."

As the scale of the Saemangeum Industrial Complex grows, there were also suggestions that efforts to secure land should be intensified. Jang Youngsu, CEO of Baekgwang Industry, said, "Utilities such as electricity and wastewater in the Saemangeum Industrial Complex are well established. However, the concern is the potential shortage of land in the future," emphasizing the importance of additional land acquisition efforts. He added, "As companies flock to the Saemangeum Industrial Complex, business is accelerating. Going forward, it is important to prepare land where companies can come."

Photo of the Saemangeum waterfront city development site visited on the 8th.
[Photo by Seungwook Park]

A representative from Doosan Fuel Cell Gunsan Plant, located in section 5 of the Saemangeum National Industrial Complex, cited the port as an advantage of the Saemangeum Industrial Complex. The Doosan Fuel Cell Gunsan Plant began commissioning in March after moving into Saemangeum and will start mass production next year. The representative said, "The products produced by Doosan Fuel Cell weigh over 20 tons and must be transported by ship," adding, "Since Saemangeum has Gunsan Port and the new port is also being established, demand from secondary battery companies is bound to increase."

Meanwhile, Saemangeum Development Corporation (GH) is promoting the Saemangeum Waterfront City project to provide a high-quality residential environment for industrial complex workers and residents. Waterfront City is Saemangeum's first complex city, with a total area of 6.6㎢. According to Saemangeum Development Corporation, the entire reclamation work was completed in June last year, and since November last year, urban infrastructure construction such as roads, water supply and sewage, and electricity has been underway.