Construction of Gaeseong Complex to start

Hyundai Asan Corporation will launch the construction of an industrial complex and tourist project in Gaeseong, North Korea, the first result of full-scale inter-Korean economic cooperation, on November.

Hyundai announced Wednesday the basic plan for the construction of the Gaeseong Industrial Complex. Hyundai tentatively selected three districts including Pyeonghwa-ri (formerly Bongjeong-ri), Panmun-gun, Gaeseong-si as the candidate sites for the industrial complex.

Under the first-phase plan, Hyundai decided to build an industrial complex on a 20-million pyeong (66 million square meter) lot that included a supporting city. And depending on the progress of the project, Hyundai will develop another 20 million pyeong area to build a complex covering 40 million pyeong by 2008, a spokesman said.

Hyundai has already conducted on-the-spot inspections of the candidate sites and will begin surveying the land and full-scale planning in September. The projected industrial estate will house shoes, textile, electronics and ginseng complexes, according to Hyundai sources. The complex will house some 850 labor-intensive firms employing 220,000 workers and is expected to export $20 billion worth of goods per annum.

Lee Jong-Hwan eye@donga.com