Pressure mounts over Sejong City

The Lee Myung-bak administration`s plans to develop Sejong City as an industrial center appear to be gaining support from the corporate community, although some conglomerates are still either reluctant or unwilling to invest.

"Several MOUs have already been signed with foreign corporations as well as many local companies," Prime Minister Chung Un-chan said at a conference yesterday.

"Including very well-known mid-sized conglomerates, 90 to 95 percent of the companies with intentions for investing in the city have made their minds up."

He added that although it is yet unclear if the MOUs will lead to investments, the government will make every effort to reap real results.

In addition, the prime minister`s meeting with leading tycoons of the Federation of Korean Industries on Tuesday also appears to have had some positive impact on some of the attending business leaders.



At the meeting, the prime minister said that the government will provide "significant financial incentives," and that measures will be drawn up to ensure that land will be provided to private investors at low costs.

"The issue will be vigorously reviewed," Hyundai Kia Automotive Group chairman Chung Mong-koo said following the meeting.

"Positive directions need to be taken," Chung said in answer to questions over whether his comment can be taken as having positive meaning.

Chung Mong-koo`s comments have been interpreted by some as a signal that Hyundai Kia Automotive Group will take the lead. But officials at the company said yesterday such interpretations may be taking things too far out of context.

"The chairman`s comments were very general, and referred to the overall plans for the city," a Hyundai Kia Automotive Group official said. He added that Chung`s comments should not be interpreted as being positive answers to the government`s drive to attract corporations to the Sejong City.

"The group`s position remains the same, which is that we have no real plans concerning Sejong City," said the official, speaking on condition of anonymity.

Similar views were echoed by officials of SK Group, whose chairman Chey Tae-won also attended the meeting and said that he was there to hear more about the issue.

"No official proposals have been made, and the group is not reviewing related issues," an SK Group official said.

"We are not in a position to announce our stance on the issue as the government`s plans have not been set, and even if plans are drawn up there is no telling how the process of passing the revisions will pan out."

Samsung Electronics also revealed a similar opinion yesterday with senior vice president Rhee In-yong saying that no changes have been made to the position that the company will review related issues once official proposals are made.

Opposing political parties are already berating the government and corporations concerning recent developments.

Liberty Forward Party chairman Lee Hoi-chang said that tax breaks and other financial support measures are included in the original plans for Sejong City. In addition, Rep. Lee Yong-kyung of the Renewal of Korea Party in a radio interview yesterday, said that the government`s stepping up of activities aimed at luring corporations to the city will put pressure on business leaders.

(cheesuk@heraldm.com)



By Choi He-suk