Negotiations with Private Companies Finalized... Actual Purchase Price 538 Million KRW
"Managed by the Province... Passenger and Freight Transport to Gain Flexibility, Benefiting the Local Economy"
Gangwon Special Self-Governing Province (Governor Kim Jin-tae) announced on the 22nd that, following the successful negotiation to repurchase the Sokcho Port International Passenger Terminal, which had been transferred to a private company through a bidding process, it plans to finalize the contract procedures with the winning bidder early next month and actively work on revitalizing the terminal.
The Sokcho Port International Passenger Terminal, which Gangwon Province is acquiring this time, was originally owned and operated by Dongchun Shipping, which pioneered the Baekdu Mountain route and invested in the terminal in 2000. However, the company went bankrupt due to financial difficulties, and ownership was transferred to private entities several times.
Gangwon Province initially planned to promote route revitalization by acquiring the Sokcho Port International Passenger Terminal, which was up for auction, but a private company won the bid. However, the province judged that the real estate leaseholder who won the bid had no plans to attract passenger ships and operate the terminal. Therefore, it imposed port facility usage fees totaling approximately 250 million KRW in two installments and, after negotiations, reached a final agreement to sign a sales contract early next month.
The purchase price totals 917.7 million KRW, with 254 million KRW in port facility usage fees, 85 million KRW in taxes and public charges, and 40.7 million KRW in value-added tax deducted, resulting in a net purchase price of 538 million KRW to be processed as revenue for Gangwon Province.
The Sokcho Port International Passenger Terminal being acquired this time is built on a site of approximately 2,600 pyeong within Sokcho Port, with a total floor area of 1,614 pyeong on the first floor, and has been used for ticket offices, duty-free shops, local specialty product stores, and rest facilities.
Gangwon Province plans to remodel the terminal and attract shipping companies to bring in international tourists from China and Russia, contributing to the revitalization of the Sokcho regional economy through seafood imports and used car exports.
Kim Seong-rim, Director of the Gangwon Province Maritime and Fisheries Bureau, stated, “As the nation’s only privately owned international passenger terminal is now managed by the province, we expect momentum in passenger and logistics transportation,” and added, “We will do our best to revitalize the terminal by attracting shipping companies and more.”
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