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Mirae Asset chief sees future in real estate, tourism

[THE INVESTOR] Mirae Asset Group will inject up to 2 trillion won (US$1.81 billion) into developing tourism infrastructure, Chairman Park Hyeon-joo said on Aug. 9.

Speaking to a local daily after the consortium led by the group was selected as the preferred bidder for a leisure complex in Yeosu, South Jeolla Province, Park said that the group will invest in the eastern and southern regions of the country. 

Mirae Asset Group chairman Park Hyeon-ju.
Mirae Asset Group chairman Park Hyeon-ju.

“Starting with this, (the group) will invest a maximum of 2 trillion won in areas on the southern coast and Gangwon Province to raise the standard of the country’s tourism, leisure industries,” Park was quoted as saying by the daily.

Park also said that investments in real estate and infrastructure offer greater opportunities for profit, saying that investing in the sector could provide returns that are up to 3 percentage points higher than interest rates offered by banks. 

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For the Yeosu project, the consortium plans to purchase existing facilities for 342.3 billion won, and invest further 750 billion won over a five-year period. The consortium is a 70:30 partnership between Mirae Asset Group and the UK-based investment firm Castlepines, with the South Korean company holding the larger share.

The consortium plans to establish an investment company in August, and continue negotiations with the South Jeolla Province government

In its proposal, the consortium said that it will establish a high quality resort in Yeosu, and lay the foundations of a tourism cluster in the region.

By Choi He-suk (