The Saemangeum reclamation project (Image courtesy of the Saemangeum Development and Investment Agency)
SEOUL, Nov. 7 (Korea Bizwire) – The South Korean government is set to lower barriers for foreign investment in the Saemangeum reclamation project, one of the country’s largest infrastructure developments, according to a joint announcement on November 6 by the Ministry of Land, Infrastructure and Transport and the Saemangeum Development and Investment Agency.
Under current regulations, foreign investors must establish a domestic corporation in South Korea to participate in Saemangeum projects. These local entities face stringent requirements, including specific credit ratings, equity capital levels, and annual revenue thresholds, which have historically deterred foreign investment.
The proposed amendment to the Special Act on Promotion and Support for Saemangeum Project will shift the evaluation criteria to focus on the parent company’s creditworthiness and financial strength rather than those of their newly established Korean subsidiaries. This change aims to stimulate foreign investment in the region.
In a related development, the government also plans to more than double the size of the Architecture Committee, which oversees construction permits, from 30 to 70 members.
The expansion comes in response to growing demand for building permits and will broaden the committee’s expertise by including specialists in urban planning, landscape architecture, and transportation.
The current 30-member committee, composed solely of architecture experts, has been criticized for its limited scope of expertise. The expanded committee will enable a more comprehensive review process by incorporating professionals from various related fields.
M. H. Lee (mhlee@koreabizwire.com)
