Foreign Investment in Saemangeum Becomes Easier

Amendment to the Enforcement Decree of the Special Act on Promotion and Support of Saemangeum Project
Legislative Notice from the 7th to the 16th of Next Month

Kim Kyung-an, Commissioner of the Saemangeum Development and Investment Agency, poses ahead of an interview on the 30th at the Saemangeum Investment Exhibition Hall in Jung-gu, Seoul. Photo by Kang Jin-hyung aymsdream@

The government is lowering the barriers for foreign companies to invest in Saemangeum. When foreign companies invest, the credit rating and capital strength of the parent company, rather than the newly established domestic corporation, will be evaluated.

The Ministry of Land, Infrastructure and Transport and the Saemangeum Development Agency announced on the 6th that they have prepared a revision of the "Enforcement Decree of the Special Act on the Promotion and Support of the Saemangeum Project," which includes this content, and will publicly announce it for 40 days from the 7th until the 16th of next month.

The revision includes easing the investment criteria for foreigners in Saemangeum. Until now, when foreign companies invested, they had to establish a corporation in Korea, and the newly established corporation’s credit evaluation and capital strength were reviewed to designate the project operator. The capital strength was assessed through the corporation’s corporate bond rating, corporate credit rating, or recent year’s equity capital and total sales. Going forward, the project operator evaluation criteria will change to the credit rating and capital strength of the parent company (foreign investor) that invested in the newly established domestic corporation. This is a measure to activate foreign investment.

Additionally, to facilitate obtaining building permits, the number of members in the Building Committee will be increased from 30 to 70. With the existing number, it was difficult to involve experts from various fields such as urban planning, landscape, and transportation. Therefore, these experts will also be included in the committee to strengthen expertise.

The full text of the revision will be available from the 7th on the Ministry of Land, Infrastructure and Transport’s website under 'Policy Data - Legal Information - Legislative Notice.' Opinions can be submitted by mail or through the website.