Hyundai chooses site for Kaesong Industrial Complex

Hyundai Group has virtually selected a 7-million pyong lot in Pyonghwa-ri, Panmun County, Kaesong City, North Korea as the site for the Kaesong Industrial Complex, it was reported Tuesday.

It was also reported that the group decided it could develop a 4-million pyong section of Sungjong-dong in stages, excluding existing urban districts in the 10-million pyong area, as a support city of the industrial complex, as well as a site for tourism, entertainment and research and development facilities.

These facts were disclosed by Rep. Kim Kwang-Won of the Grand National Party, who obtained a field study report on the West Coast industrial complex co-signed by Hyundai Group and Korea Land Development Corp.

According to the report, the Pyonghwa-ri area was deemed to be the best site for the establishment of the industrial complex as it is a good place to expand infrastructure such as roads, waterways, railroad and power lines when South and North Korea agree to connect SOC facilities. The area is 7km away from downtown Kaesong and 6km from Panmunjom.

The report pointed out that the area also has a great symbolic meaning for the creation of a joint South-North community as it is adjacent to Kaesong and Panmunjom, a symbol of the national division. It also offers easy access to the South, the report added.

An investigation team headed by Kim Ko-Joong, vice president of Hyundai Asan Corporation, and consisting of officials from Hyundai Asan, Hyundai Construction and Engineering, Hyundai Corporation and Korea Land Development Corporation, visited Kaesong and conducted field studies Aug. 4-16 to compile the report.

Rep. Kim said that the investigation team held four rounds of consultations and conducted three field surveys before signing the minutes with North Korean companies. In addition, it was reported that North Korean leader Kim Jong-Il entrusted the investigation team with the work of designating the complex site.

Sun Dae-In eodls@donga.com