Ministry of Industry Secures 'Project Feasibility' · Ministry of Interior Confirms Sufficient 'Business Viability'
Unique Architectural Style Reflecting Gwangju Identity Expected to Become a 'Landmark'
[Asia Economy Honam Reporting Headquarters Reporter Yoon Jamin] Gwangju Metropolitan City is set to officially begin construction of the 2nd Convention Center. The plan is to build it with a unique architectural style that embodies the essence of Gwangju, making it a landmark that goes beyond the concept of the 2nd exhibition hall of the Kim Dae-jung Convention Center.
According to Gwangju City on the 27th, the Kim Dae-jung Convention Center is currently operating at over 70% capacity, showing signs of saturation.
Gwangju City has established the "Plan for the Construction of the 2nd Exhibition Hall of the Kim Dae-jung Convention Center" and secured project feasibility from the Ministry of Trade, Industry and Energy, the supervising ministry, after passing the review by the Exhibition Industry Development Council of the Ministry.
Recently, the Ministry of the Interior and Safety's feasibility study on local financial investment projects showed a high B/C ratio (benefit-cost ratio) of 1.32, indicating sufficient project viability.
The feasibility study analyzed the economic effects as follows: production inducement effect of 146.5 billion KRW, value-added inducement effect of 63.3 billion KRW, and employment inducement effect of 1,382 jobs.
Additionally, the total project cost is estimated at 146.1 billion KRW, with the building scale planned as two basement floors and four above-ground floors, totaling a gross floor area of 46,000 square meters, and the project period is deemed appropriate to be completed by 2025.
This scale does not significantly deviate from the basic plan originally set by Gwangju City, allowing the project to maintain the overall framework of the basic plan while accelerating progress.
The feasibility study by the Ministry of the Interior and Safety is a mandatory procedure under the Local Finance Act for local financial investment projects exceeding 50 billion KRW before investment review.
The study is conducted by the Korea Institute of Public Administration under the Ministry of the Interior and Safety, and a B/C ratio above 1 is evaluated as having sufficient project viability.
The city has actively argued the need to expand the infrastructure of the Kim Dae-jung Convention Center, along with preparing for future MICE demand linked to Gwangju’s key strategic industries and major sports events being actively promoted during the 7th local government term, including ▲ AI Convergence Cluster Development ▲ Eco-friendly Automobile Industrial Complex Development ▲ Hosting the 2025 World Archery Championships ▲ Bidding for the 2038 Asian Games.
These efforts are believed to have positively influenced the feasibility study results.
Based on this feasibility study, the city plans to proceed with the 2nd Convention Center project in earnest from the second half of the year, including design competitions, after undergoing the central investment review by the Ministry of the Interior and Safety and architectural planning review in the first half of 2022, aiming for completion in 2025.
The 2nd Convention Center will be constructed on the site of the first parking lot of the Kim Dae-jung Convention Center in Chipyeong-dong, Seo-gu, with a total project cost of 146.1 billion KRW.
In particular, as a representative city of artificial intelligence, it will be built as a cutting-edge smart exhibition hall, and its name will be symbolically chosen through a public contest.
The city also plans to revitalize convergence and complex tourism by linking ACC-centered culture, arts, and tourism with MICE tourism centered on the Kim Dae-jung Convention Center and the 2nd Convention Center.
Mayor Lee Yong-seop said, “Once the 2nd Convention Center is built, Gwangju will become a key hub for the convention industry in the Honam region, significantly contributing to the local economy and job creation. We will proceed without any setbacks aiming for completion in 2025.”
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