Incheon-built N.K.-China border complex never
The government of the city of Incheon, South Korea’s fourth most populous city, has decided to cease running an industrial complex in Dandong, China, on the border with North Korea. Incheon has already committed a great deal of money and effort to the project, as construction of the complex has already been completed. According to Incheon, it will withdraw the office whose purpose was to run the Dandong industrial complex. The city plans to negotiate with China regarding the sale of the building and land. The 5.3-billion-won industrial complex was constructed on 132,000 pyeong (435,600 sq. m.) of land in May 1998. Incheon then sent two high-ranking officials and employed six locals to recruit and support companies wishing to set up business at the complex. From 1999 until last year, about $430 million was spent to operate the complex. However, due to worsening inter-Korea relations and better conditions provided by other industrial complexes, the Dandong complex has suffered difficulties in attracting firms. The complex lowered land prices in November 2001 in a bid to draw investors, but only four companies have moved into the complex.Incheon has already sold half of the complex land back to China in two installments between 2004 and 2005. Incheon received the same price that it paid when it first purchased it in 1998. "The Dandong complex was built to attract companies advancing to the Chinese market, which has become the world’s largest, and to secure an economic bridge to North Korea," an Incheon official said. "However, Dandong’s status as a border city means it is affected by events in North Korea," he said, most likely referring to recent acts by Pyongyang, such as its long-range missile launches and nuclear test. "This has rendered it very difficult to attract South Korean firms. We will prevent a recurrence of such a trial-and-error period by publishing a book detailing factors of the failure." Please direct questions or comments to [englishhani@hani.co.kr]
