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Businesses to Invest W20 Tril. into 16 Cities

Posted July. 04, 2008 07:09,   


Corporations, domestic and foreign, will invest more than 20 trillion won in 16 cities and provinces including Seoul from July.

At the opening ceremony of the 1st Regional Investment Fair held yesterday at COEX in southern Seoul, heads of large corporations and local governments signed 16 memorandums of understanding worth 10.2 trillion won. The fair was co-hosted by four business organizations including the Federation of Korean Industries, the Korea Chamber of Commerce and Industry, the Korea International Trade Association, and the Korea Federation of Small and Medium Businesses, and 16 city and provincial governments, and supported by the Ministry of Knowledge Economy.

Also, seven cities and provinces including South Jeolla Province and Daegu City either signed or plan to sign 21 MOUs and memorandums of agreement amounting to 10 trillion won. Given that, local governments are expected to draw more than 20 trillion won of investment at the fair.

S-OIL Corp. signed an MOU with Ulsan City to invest 1.4 trillion won by 2011 to build petrochemical facilities and storehouses in the coastal city. Korea Gas Corp. will invest 2.7 trillion won to set up a production base of liquefied natural gas in Samcheok, Gangwon Province, by 2019. Similarly, KCC Corporation will invest 3.9 trillion won to build a poly silicon factory in South Chungcheong Province by 2020.

South Jeolla Province signed 11 MOUs worth 5.2 trillion won and is scheduled to sign an MOU to draw an investment of $4.5 billion to pursue the so-called "J Project" designed to establish a leisure city along the southwest coast today.

The investment fair has been materialized since Federation of Korean Industries Chairman Cho Seok-rae said, “We’ve been told that economic conditions have worsened in local areas and we’ll more proactively discuss measures to strengthen business activities in local areas,” in his interview with the Dong-A Ilbo in April.

Meanwhile, heads of five economic organizations including the FKI chairman, Korea Chamber of Commerce and Industry Chairman Sohn Kyung-sik, Korea International Trade Association Chairman Lee Hui-beom, Korea Federation of Small and Medium Businesses Chairman Kim Gi-moon, and Korea Employers Federation Chairman Lee Soo-yeong held a press conference at COEX and announced, “We’ll wage a campaign under which large corporations will increase recruitment by more than 10 percent and each smaller firm hire one more employee.”

They said, “We hope labor unions to stop their illegal strikes and participate in our efforts to revive the economy. At the same time, we urge the political circle to draw a concerted effort from the people and take the initiative in restoring the economy.”