Joint City Development Project With China Approved

Korea and China have agree on their biggest joint venture in the Muan enterprise city project.

The Korean Land, Transport and Maritime Affairs Ministry said yesterday that it has designated 17.72 million square meters in Muan County in South Jeolla Province as a development area and approved the development plan.

Accordingly, the project`s developers - Korea-China International Industrial Development and Jeonnam Development Corp. – can begin providing compensation for land. The enterprise city will be built after a development plan is set in the second half of this year.

The project will receive investment worth 1.76 trillion won (1.28 billion dollars) including 780 billion won (570 million dollars) from China by 2012. Seoul said the project will generate 2.4 trillion won (1.74 billion dollars) and create 37,000 jobs.

Muan enterprise city is the first large-scale joint development project since Korea and China formed bilateral ties in 1992. The city will include an industrial complex dubbed "China City" and an international university complex, and become an industrial trade enterprise city with the combined functions of housing and education.

jefflee@donga.com