Yeongjong-Songdo-Gimpo, the rough Northeast Asia plan

It is indicated that ‘Northeast Asia central country realization plan’ which will be the important role in the future Korea economy, is not elaborated and sophisticated.

This development plan by area was overlapped. The part of plan was announced without traffic regulation and so there is a doubt that the plan is realized. Also, the required budget must be calculated in detail.

It is difficult to say that foreign financial institutions will move into Gimpo reclaimed land which will become the international financial center, and that foreign firms such as Disney Land will participate in the construction of various entertainment complex.

▽Them park 〓 3 special economic zones development plan for Yeongjong area, Songdo new city and Gimpo reclaimed land includes the entertainment facilities such as a golf course.

Included in Yeongjong area, all areas(2130,000 pyong) of Yongyu Island and Mueu Island will be developed as a integrated resort connected to Incheon International Airport. Out of total areas (5,420,000 pyong) of Gimpo reclaimed land, there are 3,200,000 pyong for a sports leisure site. Songdo new city also includes 200,000 pyong for the sports and culture facility including the golf course in the first step (completion is finished until 2010). There will be the development plan that the tideland of 30,000,000 pyong, the south of Sihwa lake will be developed as the large tourism complex such as the golf course and marine resort. It is the enormous overlapping investment.

It is worried that houses of 30,000~63,000 households will be built in area and not be sold. There is the plan for supplying the houses of 1,530,000 households in a metropolitan area from the year and 2006, separated from these areas.

▽ Social obstacle 〓The development of Gimpo reclaimed land is planed to solve the traffic demand using the Kyung-In Canal whether the construction is uncertain due to the objection of environment conservation organization.

If Gimpo reclaimed land is developed as the international financial city as planned, it is forecasted that Seosan reclaimed land and Saemangeum will be developed through modifying its use to the profitable use. At this time, the government can hardly find the objection logic.

▽The provision of Revenue source must be careful. 〓Jeong Eun-Bu, the official of the ministry of finance and economy said “In developing the new city of Budang, Seongnam-si, Gyeonggi-do, any national treasury is required. If the private capital is attracted based on the development profit, the large amount will not be spent”.

However, Park In-Cheol, the head of financial planning office, Ministry of Planning and Budget announced “We just established the principle which provides the maximum supports for the northeast Asia business center plan, but we didn’t figure out the definite budget.

▽Tax reduction is not only concern 〓The government announced “We will decrease the tax burden to the level of Singapore with the tax reduction measure such as decreasing the earned income tax of foreign employees who work in domestic and foreign firms by 20%.

However, even officials of the ministry of finance and economy don’t quite believe the effects that the tax incentive brings about. Choi, Jun-Uk, the researcher of Korea Institute of Public Finance pointed out in a draft of Finance Forum “When considering the international trend, it is limited to attract the local headquarter of multi-national firms through tax support”.

▽Obstacle of Different Opinion 〓The government and economical authority have the different opinion on the problem of the education internationalization.

The ministry of finance and economy persists in ‘2 years of foreign residence’ for the native’s admission qualification of international school, but the Ministry of Education & Human Resources Development insists on the native’s admission qualification of ‘5 years’. Because of it, the ministry of finance and economy and the ministry of education distributed the different news materials.

Rae-Jeong Park Jae-Seong Hwang ecopark@donga.com jsonhng@donga.com