Business Proposal Outline Geographical Conditions Development Vision Area Development Proposal Outline Investment Methods and Incentives 2
Business Proposal Outline Location : Jeonnam, Haenam Gun, Sanee Myeon, Yeongam Gun Samho Eup Area Land Size : 33.9 km2 (10,260,000 pyeong) Project Time Frame : 2006 ~ 2025 Estimated Population : 38,000 (15,000 homes) Budget : 1 trillion, 866.4 billion won (for the development of the city) Main Facilities : F1 race track, Hotels, Resorts, Theme Park, Marina, New Life City, Golf Course National Highway 77 between Aphea and Hwawon Mokpo Train Station Mokpo New Port Mokpo City Imseong Daebul Industrial Jeonnam Provincial Office Yeongsanho Lake Government Financed Provincial Load 49 National Highway 2 Sampo Distric Samho District Guseong District Link road into Enterprise City Yeongamho Lake SoLaSeaDo This new city will allow people to relax by bringing them into harmony with the sun, ocean and lakes. SoLaSeaDo is the name of the business city brand of Yeongnam and Haenam. 3
Geographical Conditions Northeast Asia Center Geographically located in the center of Northeast Asia. Shanghai 591 km, Fukuoka 420 km. Large Ports : Gwangyang Harbor (16 berth container ports) Mokpo Harbor (5 berth container ports) Cruise Ship Harbor : Mokpo New Port (12 million tons) Yeosu Expo Harbor (15 million tons) International Airport : Muan International Airport - Shanghai (China Eastern Airlines) : Flights 4 times a week(flight Duration : 90 minutes) - Beijing (Asiana Airlines) : Flights twice a week(flight Duration : 135 minutes) - Tianjin, Shengjin, Zhangjiajie (Charter Flights) Arrive at Muan International Airport, receive a visa waiver for 15 days (Stopover in Jeju Island) 4
Geographical Conditions Transportation High Speed Train - KTX ( Seoul, travel time - 2 hours) - KTX ( Jeju, around 40 minutes, plans to be built) - Southern Coastal Railroad (<-> Busan, 2 Hours, will be completed by 2020) National Expressway - Seohaean Expressway ( Seoul, travel time 3 hours) - Namhae Expressway ( Busan, travel time 3 hours) - Gwangju Wando Highway (will be completed by 2020) Domestic Airports - Yeosu Airport : Seoul 8 flights daily, Jeju twice a week - Gwangju Airport : Seoul 7 flights daily, Jeju 11 flights daily - Muan Airport : Jeju once a day - Heuksan Airport:Construction in progress(will be completed by 2020) Ferry to Jeju - Mokpo Harbour : Twice daily, Wando Harbour : Twice daily Woosuyoung Harbour : Once a day 5
Geographical Conditions The Environmental Conditions of the Location The land, ocean and lakes in this area all join together which results in beautiful surroundings that allow for many different development concepts to be created. The mild oceanic climate (14 degrees C as an annual mean temperature) allows for the possibility of four seasons of tourism. Over 90% of the area is flat land, which allows the ability to build infrastructure easily. As a result, economic growth is expected to grow quickly in this area. Finding a large amount of land in South Korea for a reasonable price in order to complete this development can be difficult. Creating new tourism and leisure destinations by building an island and a forest where people will want to go to in the Jeonnam Region. South Korea was at its highest levels of energy use by the public before new industrial companies integrated with the creation of the energy valley (Innovation City) 6
Development Vision Center of Northeast Asia Tourism and Recreation High Class Leisure City Development Concepts Relaxation and Leisure City Family Friendly Entertainment City Environmentally Friendly City Sports and Leisure City Largest multi-purpose city in Northeast Asia that includes tourism and recreational activities, along with residential areas, all together. Many entertainment and recreational facilities will be built to provide for families and tourists to enjoy their time together here. A modern city where humans and nature will live together in harmony. Many sports facilities will be built in this area for the adventurous and thrill-seeking visitors of today. 7
Area Development Proposal Outline Guseong District 1. Proposal Outline Location : Jeonnam, Heanam Gun Sanee Myun Area. Land Size : 20,960,000 m2 (6,340,000 pyeong) Budget : 989 billion won Estimated Population : 18,300 Developer : Southwestern Coast Tourism and Leisure City Inc. Main Facilities : Theme park, water park, water sports center, golf course and New Life City 8
Guseong District 2. Progress of Development 2005.8 2010.1 2012.11 2012.12 2013.2 ~ The proposal for the test-run program was chosen. The area for developing was chosen and their developing plan was approved. The rights to the area s public water domain and permission to fill in for land development were given. Final plans for the development were approved. Development of the area began. 9
Guseong District 3. The Plan for Using the Area and Estimated Land Price This development area s plans can be changed according to the needs and/or wants of the investors. Section Size (1000 m2 ) (%) Estimated Land Price (1,000 won) Undevel oped land ( m2 ) Civil infrastru cture ( m2 ) Residential Area 2,539 12.1 98 127 Business and Commercial Areas 560 2.7 272 350 Industrial Area 1,168 5.6 78 100 Tourist Accommodation Area 1,605 7.7 114 147 Tourist Facility Area Golf Course 5,458 26.0 16 20 Convention Center 520 2.5 70 90 Other Facility Areas 573 2.7 28 37 Undesignated Areas 1,572 7.5 57 73 Total Land Available for Purchase 13,995 66.8 Public Facility Area 6,965 33.2 Total 20,960 100 The estimated land price is based on the land value when the project began and the increase of value once the Development has been completed. The underdeveloped land price will cost the value of the land, including the future civil infrastructure development cost. (The price will be determined in the future) 10
Guseong District 4. New Life City Implementation Plan Size Number of Homes Building Timeframe Budget Home Size and Cost Main Facilities Main Developers About 5,000,000 m2 (150 million pyeong) 5,000 2016 ~ 2018 (3 years) 1.3 Trillion won 92 m2 (28 pyeong) on average 250 million won / household - Golf Course : 36-hole course - Community Center : Culture Facility, Exercise Facilities - Town Center : Businesses, Medical Clinics, Government Offices, Guest Houses - Other Facilities : Pet Park, Multi-purpose Square, Well Being Farm Han Yang Consortium 11
Guseong District 5. New Life City Implementation Plan Residence + Relaxation + Leisure + Culture + Tourism, all joined together for a 55 and older Active Adult Community concept called New Life City Leisure Activities Relaxation Residences Golf Course, Horseback Riding Yacht Marina Sports Park Sea Water Spa Boutique Hotel Well-Being Farms, BBQ Areas Culture Tour Wooden Houses Detached Houses, Town Houses Facilities for residential areas Creative Arts, Performances Education Programs Volunteering Programs Ocean Activities Experience Programs Tour Programs 12
Samho District 1. Business Proposal Outline Location : Jeonnam, Yeongam Gun Samho Eup Area Size : 8,661,000 m2 (2,620,000 pyeong) Budget : 437.2 billion won Estimated Population : 10,000 Developer : Southwestern Coast Tourism and Leisure City Inc. Main Facilities : Resorts, sports and leisure sites, horseback riding trails and facilities, golf courses and herb gardens 13
Samho District 2. Progress of Development 2005.8 2009.10 2014.3 2014.5 2014.7 ~ The proposal for the test run program was chosen. The area for developing was chosen and their developing plan was approved. The rights to the area s public water domain and permission to fill in for land development were given. Final Plans for the development were approved. In the middle of making the golf course and civil infrastructure. 14
Samho District 3. The Plan for Using the Area and Estimated Land Price Section Size (1,000 m2 ) (%) Estimated land price (1,000 won) Undevelo ped land( m2 ) Civil infrastruc ture( m2 ) Residential Area 1,391 16.1 76 198 Business and Commercial Areas 146 1.7 128 326 Industrial Area 186 2.2 67 189 Tourist Accommodation Area 63 0.7 99 284 Tourist Facility Area Marina 218 2.5 22 189 Convention Center 201 2.3 99 284 Other Facility Areas 64 0.7 22 45 This development area s plans can be changed according to the needs or wants of the investors. The estimated land price is based on the land value when the project began and the increase in value once the development has been completed The undeveloped land prices will be decided by the government after it has been developed. (The price will be determined in the future) Undesignated Area 692 8.0 56 91 Total Land Available to buy 2,961 34.2 Usable land for sport sites 3,144 36.3 Public Facility Area 2,556 29.5 Total 8,661 100 15
Sampo District 1. Business Proposal Outline Location : Jeonnam, Yeongam Gun Samho Eup Area Size : 4,288,000 m2 (1st stage 1,853,000, 2nd stage 2,435,000) Budget : 440.2 billion won (2nd stage 275 billion won) Capital Investment : 60 billion won * SK Construction Company 21.4 billion, Jeollanamdo 17.3 billion, Jeonnam Development Corp. 12.6 billion, Banks 8.7 billion Developer : KAVO Inc. Jeonnam Development Corp Main Facilities : F1 race track, health care center, healing center, resort, motor sports, car tuning center 16
Sampo District 2. Progress of Development 2007.8 2010.10 2011.9 2012.5 2013.10 ~ First stage of F1 track development started and the final plans for the development were approved. The area for developing was chosen and their developing plan was approved. First stage of the F1 track completed. SK construction company, as the biggest investor, left the project, and it was turned over to Jeollanamdo. Looking for investors for the 2nd stage of the project. 17
Sampo District 3. Progress Road Map Find investors. Designate where investors money will go to. Construction Finance Meeting 2nd Stage of Development Plan, including SPC Contract signed by stockholders. Organize and reorganizing the structure of the companies on this project. Apply for project approval. Receive the rights for the public water domain. Persuade the Government to approve the Project Confirmation of what each Company will do Create and edit and decide on a plan for the project development. Create the paperwork to apply for final plans approval. 18
Sampo District 4. 1st Stage of Development F1 Race Track (completed) F1 Race track, roads and surrounding civil infrastructure have been completed Expanding the race track facilities and building a car tuning valley Go cart racing track RV camping zone ATV course Car tuning valley (In the middle of receiving government approval for this project) 19
Sampo District 5. Stage 2 of Development Section Main Facilities Size 1000 m2 (%) Residential Area Business and Commercial Areas Public Amenities Houses and Apartment buildings Business and Commercial buildings and Accommodations Various Public Amenities Facilities 305 12.4 194 8.0 5 0.2 Exercise Facilities Gym and Exercise Areas 333 13.7 Tourism Facilities Marina Facilities 21 0.9 Lab and Institute Facilities Public Facilities F1 Car Lab and Institute Roads, schools, parks, green space. 129 5.3 1,448 59.5 Total - 2,435 100 20
Investment Methods and Incentives District Investment Methods Guseong Samho Direct Investment (Direct Investments through land purchases) - Discussion with a main development company about the developed land and the non-developed land and the selling of both of them. SPC In-direct (Sub-SPC Investments) - Houses, commercial buildings, hotels, marinas and other types of businesses can be opened. Banks Investors Sub-SPC Process of Project Development Initial Developers Sampo District KAVO and individual investors directly invested into this project. Original investors decide when and how many new investors to bring on board this project. Many companies can still join this consortium for investments. 21
Investment Methods and Incentives District Investment Methods Different ways to invest Investors can buy non-developed land and with the approval from the main developers change the building plans of that land. Investors can buy land in an area which already has the civil infrastructures built around it and build what they want on that land. Investors can buy existing businesses and residences or manage existing businesses that have already been built by the main developer. 22
Investment Incentives Tax Breaks for Foreign Investors Tax Reductions : Initial developers (with an investment of over 30 million dollars) Business relocation (with an investment of over 10 million dollars) Corporation Taxes : 3 years - 100% discount, 2 years - 50% discount * Exclusive Area for Foreign Investment: 5 years - 100% discount, 2 year - 50% discount Property and Acquisition Taxes : 15-year discount Casino for Foreigners Only Building a casino can only be approved by someone who has a plan to invest 500 billion won into the tourism industry and has already invested 300 billion won Permanent Residency /Visa Waiver You will be granted permanent residency if you invest 500 million won over the next 5 years Arrive at Muan International Airport, receive a visa waiver for 15 days (Stopover in Jeju Island) Local Government Support Special laws for developing business districts will help support this project SoLaSeaDo City Entrance Road : 10 km. of road will be paid for by the local government at an amount of 255.3 billion won (2013~2020) One-Stop services and support for all government approval processing 23
An investment This leisure and tour area project needs Chinese and other foreign investors and visitors as domestic demand for the area is not enough to support it. This project is looking for investors who already have a good network and relationship with Korean Sampo Samho companies. Guseong Possible high return investment areas Large hotel, convention center, casino for foreigners, seniors town, theme park, healing center etc. 24
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