'Yeosu LNG Terminal' Selected for Regional Revitalization Investment Fund

Rapid Promotion with Ministry of Interior Exemption
Annual 300t Scale... 2.8 Trillion Won Production Induced
"Will Grow Fund for Local Economy"

The government has selected the 'Jeonnam Yeosu Myodo LNG Terminal' as the third project of the Regional Revitalization Investment Fund. This terminal is scheduled to be completed by December 2027. It plans to supply an annual volume of 3 million tons of liquefied natural gas (LNG) not only to Yeosu but also to nearby national industrial complexes such as Gwangyang.

Choi Sang-mok, Deputy Prime Minister for Economic Affairs and Minister of Economy and Finance /
[Photo by Ministry of Economy and Finance]

Choi Sang-mok, Deputy Prime Minister for Economy and Minister of Strategy and Finance, chaired the Economic Ministers' Meeting at the Government Seoul Office on the 12th and announced the results of the Regional Revitalization Investment Fund selection. Following the selection of two projects in March, 'Chungbuk Danyang Station Complex Tourism Complex' and 'Gyeongbuk Gumi 1 National Industrial Complex Structural Advancement,' the government announced the promotion of a large-scale third project on this day.

The Regional Revitalization Investment Fund, launched for the first time this year, is a new regional investment method that promotes large-scale convergence and complex projects desired by the region by utilizing private capabilities and capital. The government finances and the Local Extinction Response Fund and the Korea Development Bank each invest 100 billion KRW to create a parent fund totaling 300 billion KRW, and local governments and the private sector raise additional investment funds through the establishment of subsidiary funds and project SPCs. The total project scale is 3 trillion KRW.

With this fund selection, the Yeosu Myodo LNG Terminal will receive a parent investment amount equivalent to 10% of the total project cost (1.4362 trillion KRW). It is expected that the target completion date (December 2027) can be met when local government and private investments are added in the future. The government plans to reduce the local government investment approval period from 12 months to 4 months by promoting an exemption from the Ministry of the Interior and Safety’s financial investment review. The local council’s approval of the investment budget will also be completed within this year.

Yeosu Myodo LNG Terminal Expected Bird's-eye View /
[Image provided by Ministry of Economy and Finance]

The Yeosu Myodo LNG Terminal will be constructed with three LNG storage tanks and infrastructure such as piers and pipelines. LNG imported through the pier facilities will be unloaded from transport ships and stored in tanks, then converted into vapor state and supplied to nearby Yeosu and Gwangyang national industrial complexes through pipeline facilities. The available LNG supply capacity will reach 3 million tons annually. The government expects that the terminal’s construction will create employment for about 13,000 people and induce production effects worth approximately 2.8 trillion KRW.

The government stated, "The Regional Revitalization Investment Fund is a representative collaborative policy promoted through communication among various related ministries and agencies, including the Ministry of Strategy and Finance, Ministry of the Interior and Safety, Financial Services Commission, and Ministry of Land, Infrastructure and Transport," and added, "We will continue to collaborate and grow the fund to ensure substantial and practical regional economic revitalization."