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A Saudi Arabian realty developer disclosed its intention to invest $8 billion (7.6 trillion won) in development of areas in and around the Saemangeum reclamation project. The move comes at a time when President Lee Myung-bak’s administration, committed to development of the landfill project in North Jeolla Province, aggressively continues to attract foreign investments to the project. According to the North Jeolla Provincial government and Gunsan City on February 29, Kang Hyun-wook, former head of the Saemangeum project taskforce for the presidential transition team, Moon Dong-shin, mayor of Gunsan City, and Chairman Nasr O. Al Hattami of Dar Al Salam Holdings met at a hotel in Yeouido, Seoul on February 25 where they discussed ways to invest in Saemangeum.

Dar Al Salam Holdings is said to be a realty developer, in which Saudi and Qatari royal families participate as major stakeholders. The three people reportedly held hour-long talks about how to approach the project, and methods of development at the hotel following the inauguration ceremony of President Lee Myung-bak. 

Mayor Moon, and head of Jeolla Provincial Government’s tourism development section briefed Hattami about a project to develop the Gogunsan Archipelago nearby Saemangeum. Hattami expressed his strong interest in investing in the project, although he fell short of specifying the exact figures.

Earlier in December, Dar Al Salam Holdings secretly signed a memorandum of understanding on the investment in the Saemangeum project with the city of Gunsan.  The Saudi Arabian firm reportedly handed over a proposal calling for $8 billion-investment that they had prepared to the presidential transition team late last year.

Dar Al Salam Holdings is said to be considering investing in the Gogunsan project first, since the development of the Saemangeum landfill can only begin after 2010. The Saudi company is considering investing in the construction of a marine casino, a hotel, and a cruise terminal on Shinshi-do, Munyeo-do, Jangja-do, and Seonyu-do islands, which are linked via the Saemangeum dike.

The business group also has a plan to develop a 2 million sq.-meter landfill site inside the dike after 2010 following its investment in the Gogunsan project.

A Gunsan City official said, “Chairman Hattami did visit the Saemangeum area and signed an MOU with Gunsan City in December. But we have to wait and see further development because approval for construction projects and administrative procedures require consultation with central government agencies.”

lc21@yna.co.kr
Lim Cheong (Jeonju=Yonhap News)

2008.02.29