[Manbo Jeongdam] Kim Gyeongan, Saemangeum Development Agency Chief: "This Year, 12 Trillion Won Investment in Saemangeum Industrial Complex... Advantage of Occupancy in 6 Months"

Kim Kyung-an, Administrator of the Saemangeum Development Agency, is touring the Saemangeum Investment Exhibition Hall in Jung-gu, Seoul on the 30th. Photo by Kang Jin-hyung aymsdream@

원본보기 아이콘

Kim Kyung-an, Administrator of the Saemangeum Development Authority, stated this on the 30th of last month at the Saemangeum Investment Exhibition Hall in Yongsan-gu, Seoul, saying, "The demand for corporate settlement has explosively increased to the point that available land within Saemangeum is insufficient." Administrator Kim is the person who attracted investments worth 10.2 trillion won in the first half of this year alone to the once barren Saemangeum. The Saemangeum industrial complex consists of a total of nine sections, with 84.7% of sections 1, 2, 5, and 6 already sold. Considering that the remaining areas are designated for parks and neighborhood living zones, it is virtually sold out.

He plans to boost investment attraction performance through the second half of this year and into next year. In particular, he looks forward to the sale of sections 3 and 7 of the Saemangeum industrial complex in the first half of next year. The Saemangeum Authority will complete the reclamation of section 3 next month and section 7 in November, and once the sites are prepared, land supply could begin as early as April next year.

Administrator Kim is also putting full effort into attracting global companies. He said, "Of the current investment performance of 10.2 trillion won, about 4 trillion won came from Chinese companies. In this situation, I will embark on a business trip to China next month to increase investments from Chinese companies." He plans to visit Ge Lin Mei (GEM), China's largest precursor producer, and Longbai, the global No.1 in ternary cathode materials. He also mentioned, "Xiamen Tungsten, a state-owned Chinese automotive material producer, invested 15 billion won and is now making a second investment, so I will visit there as well." Below is a Q&A with Administrator Kim.

- It has been 1 year and 2 months since your appointment in July last year. What are your reflections?

▲ Over the past year, as investments poured in, Saemangeum has attracted attention as a center for advanced strategic industries. Despite difficult economic conditions, large-scale investment attraction centered on secondary batteries was achieved with active support from the central government. Especially over the past two years, with investments totaling about 10.2 trillion won, the once barren Saemangeum has transformed into a place where companies and people gather. Without resting on these achievements, I will continue to strive toward goals such as the '3 major hubs, Saemangeum Megacity, and reestablishment of the basic plan,' so that Saemangeum can leap forward as a growth engine for South Korea and an economic hub in Northeast Asia.

- You are promoting early supply of sections 3 and 7 of the Saemangeum industrial complex. How is corporate interest in this regard?

▲ We are continuously negotiating with companies in advanced strategic industries both domestically and internationally for settlement in the new industrial complexes. We have secured companies interested in settling not only in sections 3 and 7, which will be sold in the first half of next year, but also in section 8. It is difficult to disclose specific investment details. However, most of these companies are in advanced strategic industries targeted by Saemangeum, such as secondary batteries, advanced materials, and mobility. Currently, the Administrator and all staff are actively working, focusing on companies with high growth potential or those that can create synergy with existing tenants.

Kim Kyung-an, Administrator of the Saemangeum Development Agency, is walking near the Saemangeum Investment Exhibition Hall in Jung-gu, Seoul on the 30th. Photo by Kang Jin-hyung aymsdream@

원본보기 아이콘

- What differentiates Saemangeum industrial complex from others?

▲ From a corporate perspective, companies can settle up to 18 months earlier than in other industrial complexes. Other complexes require approval not only from related agencies such as the Ministry of Trade, Industry and Energy and the Ministry of Land, Infrastructure and Transport but also from the local governments in charge. Administrative procedures alone can take up to two years. Companies wishing to settle in Saemangeum industrial complex complete these processes within six months. The Saemangeum Authority’s one-stop support center handles administrative tasks without the companies needing to intervene directly. Additionally, Saemangeum land was created through reclamation projects, so there are no issues with civil complaints or compensation. Based on these differentiators, the Saemangeum industrial complex has grown rapidly, to the extent that recently, the Pohang steel industrial complex in Gyeongbuk visited Saemangeum for a tour?something unimaginable in the past.

- What was the secret to shortening the reclamation period and advancing the supply of sections 3 and 7 by one year?

▲ To meet the high demand from companies, we shortened administrative procedures and ordering periods for sections 3 and 7. First, we cut six months from administrative procedures such as marine area use consultations and development and implementation plan approvals. This was achieved through multiple consultations and continuous coordination of differing opinions with related agencies including the Ministry of Oceans and Fisheries. The ordering period was shortened by preemptively removing factors causing delays, reducing the bidding period. The National Assembly Coordination Office led pre-inspections of project details and bidding methods with related agencies before construction orders, which had a significant impact. Technically, stable reclamation was ensured by installing a soil embankment called a Gatoje, and selectively prioritizing reclamation of industrial land zones over residential and commercial zones. As a result, the site preparation schedule for sections 3 and 7 was advanced from the originally planned first half of next year to October.

- What are the plans for the remaining sections 4, 8, and 9?

▲ Section 8 will be reclaimed by the first half of next year. Although reclamation of section 8 started at the same time as sections 3 and 7, its deeper water depth requires more time. The water depth of section 3 is EL -4.0m, section 7 is -3.4m, but section 8 is -7.1m. The dredging volume for section 8 is 15.26 million cubic meters, 45.6% more than the 10.48 million cubic meters for sections 3 and 7. Nevertheless, we are reviewing additional ways to shorten the reclamation period with the project implementer, the Korea Rural Community Corporation.

Sections 4 and 9 will have their land supply timing advanced by two years, with land provided in 2027. By separating industrial land zones from residential and commercial zones within these sections and prioritizing industrial land development, land can be supplied more quickly. We will also establish dredging plans reflecting dredger capacity and place integrated orders for sections 4 and 9 to reduce construction periods. We plan to order Gatoje construction in the second half of this year, complete reclamation of industrial land zones by the first half of 2027, and supply land from the second half of 2027.

- In July, the government announced at a public discussion that it would increase industrial land within the Saemangeum industrial complex. What is your view?

▲ We plan to develop the 2nd industrial complex as soon as possible to supply industrial land in a timely manner. We will also review the basic plan to increase industrial land. Already reclaimed land will be supplied as industrial land through land use conversion. Subsequently, considering corporate demand, we will promote development of the 3rd industrial complex.

First, we will rapidly build core infrastructure such as the Tri-Port (airport, port, railway) connecting sky, sea, and land in Saemangeum, inter-regional connecting roads, and power and water supply facilities. Next, we will improve working conditions by activating commuter buses and expanding social overhead capital (SOC) such as sports facilities. Furthermore, beyond granting corporate tax reductions (100% for 3 years + 50% for 2 years) in the Saemangeum International Investment Promotion Zone, we plan to negotiate with related agencies to increase tax benefits. Additionally, we will reform regulations that hinder corporate activities. In the first half of this year, we improved the ecological area ratio regulation limiting factory site utilization from 10% to 5%, increasing corporate land use efficiency. Going forward, we will hold corporate meetings chaired by the Administrator to identify and ease regulations restricting corporate activities.

Kim Kyung-an, head of the Saemangeum Development Agency, is touring the Saemangeum Investment Exhibition Hall in Jung-gu, Seoul on the 30th. Photo by Kang Jin-hyung aymsdream@

원본보기 아이콘

- Is it possible to attract companies to the 3rd industrial complex following the 2nd?

▲ When companies flood in, the industrial complex must be significantly expanded. Without preparing the 2nd and 3rd industrial complexes in advance, it may be difficult for companies to settle. Also, to develop Saemangeum not only as an advanced industrial complex but also as a MICE (Meetings, Incentives, Conferences, Exhibitions) industry and global food hub, additional industrial complexes are necessary. Therefore, we must create a solid basic plan for the Saemangeum industrial complex. Recently, we have been redrafting this basic plan from scratch. The government is supporting about 3 billion won for this project.

- You mentioned growing Saemangeum into a global food hub. Could you elaborate?

▲ One of the world’s leading food hubs is in Rotterdam, Netherlands. For example, the Netherlands cannot produce oranges but has become a major hub importing them from abroad and distributing them across Europe. Various global food companies are located in this hub. The agricultural and life sciences surplus generated through this hub in the Netherlands amounts to about 40 billion USD annually. In contrast, Korea records a deficit of about 30 billion USD.

Saemangeum is located close to Southeast Asia, which has a population of about 1 to 1.5 billion. Currently, global food companies are watching Southeast Asia as a market larger than Europe. To target this market, a hub like Rotterdam’s food hub is necessary, and Saemangeum is well-positioned for this role.

Additionally, we have signed memorandums of understanding (MOUs) with Wageningen University in the Netherlands, a world-renowned agricultural university, as well as Seoul National University and Sejong University, and are conducting research related to establishing a global food hub in Saemangeum. The research started earlier this year and is expected to conclude within the year. Recently, Wonkwang University was selected as a glocal university and plans to build an agricultural life sciences-related university in Saemangeum linked to the global food hub. According to inquiries with Wonkwang University, the president is already actively preparing for a business trip to the Netherlands related to this. Around Saemangeum, there is a food cluster in Iksan City, Jeonbuk, and the Rural Development Administration in Jeonju City, Jeonbuk.

To attract companies linked to the university, we are engaging with various food companies. Korea currently lacks a dedicated port for global food hubs, but Saemangeum will have an airport, port, and railway by 2032. We are discussing infrastructure development necessary for food companies.

- What are your goals for the remainder of your term?

▲ I want to increase industrial land in Saemangeum. The goal is to raise industrial land from the current 9.9% of total land to 20%. In particular, we aim to convert agricultural land into industrial land. This requires consultation with the Ministry of Agriculture, Food and Rural Affairs. From their perspective, it may be difficult to convert land use because they plan to build agricultural facilities such as smart farms on agricultural land. The Saemangeum Authority recognizes this but intends to resolve it through negotiations.

- Are there any recent issues?

▲ As we attract many secondary battery-related companies, concerns about treated water have arisen. The Saemangeum Authority is implementing a joint discharge pipe project for secondary battery companies. Through this pipe, only treated water meeting legal standards will be discharged and managed. Through such management and supervision, we aim to restore residents’ trust and prevent disruptions to corporate operations. However, I worry that excessive concerns about treated water might cause companies we worked hard to attract to withdraw investments. If this happens, companies that promised relocation might disperse to other industrial complexes, and Saemangeum could remain a barren field as before.

Kim Kyung-an, Administrator of the Saemangeum Development Agency, is giving an interview on the 30th at the Saemangeum Investment Exhibition Hall in Jung-gu, Seoul. Photo by Kang Jin-hyung aymsdream@

원본보기 아이콘

◆ Kim Kyung-an, Administrator of the Saemangeum Development Authority...

▲ Born in Jeongeup, Jeonbuk (1956) ▲ Department of Public Administration, Wonkwang University; Master’s and Doctoral coursework completed at the same university ▲ Private member of the Saemangeum Committee under the Prime Minister’s Office ▲ Chairman of the Saenuri Party Jeonbuk Provincial Party ▲ 6th President of Seonam University ▲ Head of the Saemangeum Special Headquarters of the People Power Party’s Yoon Seok-yeol presidential campaign in the 20th presidential election

Interview by Hwang Junho, Head of Construction and Real Estate Department

© The Asia Business Daily(www.asiae.co.kr). All rights reserved.