U.S. Consortium Invests Three Billion Dollars in Yeongjongdo and Gwangyang

U.S. real estate and hotel corporations, including Trump, HRH Construction, and Marriott Hotel, will establish a consortium to invest three billion dollars in Yeongjongdo and Gwangyang-si in Jeonnam. They will forge a Memorandum of Understanding (MOU) with the Korean government.

The Uri Party and the Ministry of Finance and Economy (MOFE) announced yesterday that an investment mission, consisting of leading U.S. corporations, will visit Korea to conclude the MOU to invest in the Incheon Free Economic Zone (FEZ) and the tourism and leisure industry in the Jeonnam region on September 17.

The investment mission, which will be headed by former Chairman of the Senate`s Committee on Banking, Housing and Urban Affairs Alphonse D’Amato, includes U.S. real estate tycoon Donald J. Trump, Chairman Gregory Cuneo and President Brad Singer of HRH Construction, and President Jerome Speyer of Tishman Speyer Properties.

“A second investment mission, which will include CEOs of MGM, Universal, and SeaWorld, will come to Korea to discuss making investments in Gwangju, Yeosu, Muan, and Busan,” said Uri Party lawmaker Yeom Dong-yeon, who took the lead in attracting investment. “Investment money could amount to more than 10 billion dollars depending on the level of government support.”

The U.S. investors are interested in Yeongjongdo and Cheongla in the Incheon FEZ, and Hwayang in the Gwangyang FEZ. The J Project of building a large-scale golf resort in Haenam, Jeonnam, is engaging in investment negotiations.

HRH Construction is in charge of the investment project, and companies specializing in tourism and leisure, like urban development and hotel resorts, are participating in the consortium.

The government plans to give a tax break to the investors and simplify the investment approval process.

HRH Construction built the Empire State Building and the Citibank headquarters building in New York, and Tishman Speyer Properties owns Rockefeller Center and the Chrysler Building, the MOFE said.

Trump, whose sales reached 8.5 billion dollars last year, has built high-rise buildings in New York, including Trump Plaza.

Jong sik Kong Min-Hyuk Park kong@donga.com mhpark@donga.com