Production of 9.3 Trillion KRW, Added Value of 3.6 Trillion KRW, and Creation of 45,000 Jobs Effect
Choi Man-rim, Deputy Governor of Gyeongnam Province, is explaining the restart of the Geoje Jangmok Tourist Complex development project. / Photo by Ryeong Lee
[Asia Economy Yeongnam Reporting Headquarters Reporter Lee Seryeong] The development project of Jangmok Tourist Complex in Geoje, Gyeongnam, which had been stalled for 26 years, entered a new phase after passing the resolution at the 400th regular session of the Provincial Council on the 25th.
On the 28th, Gyeongnam Province announced that the Jangmok Project would begin operation in 2030 following the Provincial Council's approval of the social agreement consent.
The plan is to complete the creation plan approval and land acquisition by 2024, start construction in 2025, finish site development by 2027, and complete the planned upper facilities on the development site by 2030.
According to the province, the Jangmok Tourist Complex will be built on an area of 1,250,987 square meters in the Guyeong-ri area of Jangmok-myeon, Geoje City.
A total project cost of 1.2 trillion KRW will be invested to establish ▲accommodation facilities ▲complex cultural commercial facilities such as media art, performance halls, and exhibition facilities ▲recreational and cultural facilities including national gardens, healing courses, virtual reality, and five-sense experience facilities.
The development project faced a crisis after being designated as a tourist site in 1996 and initially promoted by Daewoo Construction, which abandoned the project amid the International Monetary Fund (IMF) economic crisis and other difficulties.
After 2014, the Gyeongnam Development Corporation took over the project, but progress was halted for a long time in 2018 due to local residents' opposition to the construction of a golf course within the complex.
The province established a strategic plan focused on healing and leisure, excluding the golf course, and invited developers, selecting the JMTC Consortium as the preferred negotiator in May and is currently in negotiations.
The consortium consists of Korea Investment & Securities, Korea Investment Trust Management, Dasan Networks, SH Holdings, YDC Holdings, and G&I DC.
The agreement with the consortium includes ▲establishing a project corporation within 60 days after signing the business agreement ▲payment of a performance bond for each project implementation stage.
The agreement also stipulates that if the developer fails to establish a creation plan within two years of signing the land sales contract for about 30% of the project area to be sold by the province, or fails to start construction within two years after plan approval, the province will exercise the right of repurchase and forfeit the performance bond.
The developer is responsible for securing all funding and executing the project, and must directly develop at least 35% of the area subject to sale after the tourist complex is created.
The development profits from approximately 30% of the public land purchased from Gyeongnam Province and additional development profits generated after project completion will be shared with the province at the same ratio.
Unlike the Ungdong 1 District development project or the Masan Robot Land project, there is no clause for guaranteed payment of confirmed investment costs.
If the project is terminated due to the developer's fault, the invested costs to date will not be confirmed or paid.
Gyeongnam Province expects the Jangmok Tourist Complex development to generate a production inducement effect of 9.3 trillion KRW, a value-added inducement effect of 3.6 trillion KRW, and create 45,000 jobs.
Choi Man-rim, Deputy Governor, said, “We will develop Jangmok into a high-quality healing tourist complex that combines Geoje’s natural environment with culture, arts, and information and communication technology, and focus all provincial capabilities to foster it as a key tourism hub in the southern region by linking it with the nearby Gusan Marine Tourist Complex and Masan Robot Land.”
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