Industrial Complex for Korean Corporation in Dandoong City, China

An industrial complex solely for South Korean corporations is to be established in Dandoong City of China.

On October 4, 2002, Ministry of Commerce, Industry and Energy announced that Dandoong City government and Korea Industrial Complex Corporation agreed to set up a model industrial complex in the city to facilitate the industrial cooperation between South Korean and China. Thus, according to the announcement, delegates of both will meet in Seoul on Oct. 5th to sign the agreement into a contract. On hand at the ceremony will be Shin Kook-hwan the Minister of Commerce, Industry and Energy, Lee Hyo-jin, the head of the corporation, and Dandoong City’s Secretary of Communist Party Chaizupoo.

The complex will be located within the Dongkang Economic Zone. It will be close to Shinuiju and 420 km apart from Seoul. The ministry explains that, once the Kyungui Line is completed, it will serve as an important juncture for the purpose of business operations and logistics since at here, the Kyungui Line will be connected to the Trans-China Railroad.

Both sides plan to embark gradually on the construction project as early as the end of this month. In the first phase of it, which will end in March of 2003, an area of 283,800 m2 will be developed. If the need for more development occurs, additional 990,000 m2 will be developed.

Under the plan, in the area to be developed first, approximately 40 business entities will be constructed, which wish to secure a base camp for advancement into North Korea, which engage in labor-oriented industries such as apparel, electronics, texture and shoes, and/or which can utilize the natural resources of that area such as wood-processing businesses and seafood restaurants.

In last June, the corporation conducted a research on the corporate establishments to figure out the potential demand. The research has found out that 48 corporations would use a total of 330,000 m2.

The ministry explained, “The rent for the land use is cheaper than that in any of the other areas. Our temporary estimation puts the cost at 60,000 to 70,000 won for 3.3 m2. In addition, the term of the lease will last for 50 years long. Furthermore, in terms of geography, it will serve well as the center for our corporations since it is close to Shinuiju.”

Ja-Ryong Koo bonhong@donga.com