World -Class Golf Resort to Be Established in Cheju

The government decided to newly construct 30-40 golf courses in Cheju Island to create a world-famous golf resort. For this project, it plans to enact a special law and to establish the basic development plan.

And it is also reviewing the plan of local and national tax reduction in order to lower the golf fee to a degree that the domestic people can use the course cheaply.

`The Committee for the Development of Cheju International Fee City` under the Prime Minister Office announced yesterday to seek to set a special law for Cheju international free city and to submit the new special law to the National Assembly in the beginning of next year through the consultation with the related ministries and departments including the Ministry of Finance and Economy and the Ministry of Government Administration and Home Affairs, and the political parties.

A governmental official said, ``In July, the related ministries and departments reviewed a bill to develop Cheju Island as an international center for trade and finance, which was set by the New Millennium Democratic Party (NMDP). The reviewers concluded that the plan lacked the actuality. So, the government changed its direction to develop Cheju Island as a world-renowned golf resort by using its natural environments and the tourist attractions.``

▽ State-Owned Corporation Constructs Golf Courses

The government decided to grant the permit for constructing 30-40 golf courses, but it will establish a state-owned corporation, which will pursue the Cheju development project, in order to prevent a conflict over the preferentialism. The newly established corporation takes the charge of construction of golf courses, which will be run as public course, not as membership-based private course.

The government is also considering the plan to raise the fund for constructing golf courses by the investment of the provincial government or the issue of public bond. And it is taking into consideration the long-term rent of state-owned land to resolve the difficulty in securing the land for golf course.

▽ Tax Benefit

Considering the importance of attracting the domestic tourists as well as the foreign tourists from China, Japan, etc., the government plans to slash the golf fee to a degree that it has the price competition even after combining the round-trip plane ticket fee, compared to the courses located in the metropolitan areas. For this, the provincial government will establish a bill to cut or exempt the acquisition, registration, and property taxes, and the central government will constitute a bill to reduce or exempt the special consumption tax.

Another governmental official said, ``It will be the most worrisome situation if other provincial governments raise the issue of equality with regard to the tax benefit. However, the government will try to persuade them to understand the situation by stressing the special circumstances of Cheju Island and the necessity for developing the international tourist site.``

▽ Designation of Free Trade Area

The government concluded that it would be impossible to implement the ruling party`s demand on designating the Seoguipo harbor as a duty free area, because of the lack of the harbor facilities for large container ships, and the difficulty in securing the candidate site. Thus, it decided instead to designate the free trade areas in Cheju Island, in which the export-goods manufacturing companies would be withheld the imposition of tariffs for raw materials and products. And in order to attract foreign golf tourists, the government will extend the range of non-visa entrance and will strengthen the ex post facto duty free store system.

sanjuck@donga.com