Good afternoon, ladies and gentlemen. Thank you so much for joining us here today. (As you heard,) My name is Donald Valiant, and I serve as a specialist in the International Affairs & Trade Division of the Gyeonggi Provincial Government in the Republic of Korea. Today my colleagues and I would like to provide you with a brief introduction to Gyeonggi Provinces initiatives for the development of its West Coast.
To do this, Id like to take the following approach: First well start with an overview of the current status of both Korea and Gyeonggi including some basic facts and figures about the nation and the province. We can then take a closer look at the regional market potential and marine industry policy of Gyeonggi as well as its vision. From there Ill go on to highlight some examples of the development projects being pursued on the West Coast of the province. And then finally, to wrap things up, we can take a look at a key event organized by the province to promote the marine leisure industry. This, of course, being the Korea International Boat Show.
First, lets set the stage with some basic information about Korea and Gyeonggi Province.
As you know, Korea and Gyeonggi Province are situated right at the center of Northeast Asia. This is one of the most densely populated regions on the planet; Northeast Asia accounts for roughly one-quarter of the worlds population and one-fifth of global GDP. Korea itself is positioned at the heart of Northeast Asia directly between China (to the west) and Japan (to the east). Korea, with a GDP of USD 986.3 billion, is the worlds 13th largest economy. And with total trade of over USD 691.1 billion, it is also the worlds seventh largest exporter. Gyeonggi Province is located at the center of the Korean Peninsula and surrounds the Korean capital city of Seoul. Here I just want to point out that there are a number of major Asian cities located within a 2-hour flight of the province including Beijing, Shanghai, Tokyo, Vladivostok the list goes on.
Zooming in We get a clearer view of the Korean metropolitan area and the position held by Gyeonggi Province. Bordered to the north by the De-militarized Zone (or DMZ) that separates North and South Korea, and to the west by the Yellow Sea, Gyeonggi Province surrounds the national capital of Seoul marked in orange at the center of this map and encompasses the Port City of Incheon marked here in green. Gyeonggi Province itself is indicated in white. Please note that although the cities of Seoul and Incheon are separate autonomies from Gyeonggi, all three together make up the metropolitan area of Korea. This area accounts for almost half of Koreas total population of 50 million as well as half of Koreas total GDP. Gyeonggi Province itself has an area of slightly more than 10,000 square kilometers and a population that exceeds 11 million. The Gross Regional Domestic Product (or GRDP) of Gyeonggi stands at USD 200 billion while total provincial trade amounts to USD 132.5 billion. So, both in terms of GDP and trade, Gyeonggi Province accounts for approximately one-fifth of Koreas overall economy.
Here we can see some of the many domestic and foreign firms operating in the province that are driving the growth of both Gyeonggi and Korea. Allow me to drop a few famous Korean names Starting in the northern region of Gyeonggi, we have LG Display, which is one of the worlds largest producers of flat-panel displays. In the eastern and southeastern regions of the province we have Samsung Electronics and Hynix Semiconductors, both of which are world leaders in their respective industries. And then, in the southwestern region of the province, we have Hyundai-Kia, the worlds fifth largest automotive company. These particular companies serve as anchors for regional clusters in their respective industries. Of course, I offer these names just as examples. Overall, Gyeonggi Province is home to more than 39,000 enterprises. This includes approximately 2,900 foreign-invested firms such as 3M, Siemens, Volvo, Bosch and so on.
Having said all that, lets now turn to the marine policy and market potential of Gyeonggi.
Globally, marine leisure tourism is the number two tourism product, second only to heritage and cultural tourism. And yet yachting, scuba diving and snorkeling are still relatively new to Korea. Nonetheless, the interest of the Korean public in marine leisure activities has been growing rapidly over the past few years, with many locals paying large sums to travel to Southeast Asia or other regions to enjoy marine-related vacations. The factors driving this increased interest include rising income levels, more leisure time and easier access to coastal areas. Here we have some projections for the marine industry in Korea: As you can see, the number of leisure boats is projected to increase to 25 thousand by 2012. And the number of general leisure ships is expected to increase to 50 thousand. Also, the number of helm licenses issued in Korea has jumped from a little less than 7000 in the year 2000 to more than 74,000 last year. This works out to annual increase rate of almost 40% per year. Based on such projections, the Korean central government plans to develop the country into a marine leisure tourism powerhouse by the year 2020. And naturally, to meet the demand stemming from such increases, Gyeonggi Province is actively pursuing the development of the marine leisure industry on its West Coast.
So why the West Coast of Gyeonggi Province? One of the points we should consider here is the proximity of Gyeonggis West Coast to the eastern seaboard of China. The maritime facilities of our West Coast are the closest to this dynamic region of China and are part of the corridor of commerce and exchange linking the two nations. Just in terms of tourism alone, over the past 8 years there has been an average annual increase of almost 7% in the number of tourists coming to Korea from China, with more than 6.4 million Chinese tourists visiting Korea last year.
Also, the West Coast of Gyeonggi Province offers 250 kilometers of coastline as well as 150 square kilometers of tidal flats; these are commonly ranked among the 5 best tidal flat areas in the world. We should also consider the recently established Yellow Sea Free Economic Zone. Working together with South Chungcheong Province, Gyeonggi Province is developing this 25.4 square kilometer zone into one of the main drivers of the national economy. Based on these and other merits, we are pursuing the full-scale development of this region.
Gyeonggi Province has three primary strategies for the development of its West Coast: First is the development of the Marine Tourism Industry. This will be accomplished through theme parks, ecological experience facilities, marine industry expansion and boating competitions. The second strategy focuses on the new and renewable energy sector. This includes solar and wind energy as well as biomass and tidal power. And the third strategy is the provision of educational, medical and tourism services such as colleges, hospitals and senior citizen facilities. Of course, it is the development of the marine tourism industry that I would like to emphasize today.
In order to activate the regional marine leisure market, Gyeonggi Province is integrating these three strategies to develop the Gyeonggi Bay area as the base of a marine industry cluster that links the associated sectors of production, marinas and tourism. Ultimately, we seek to make this the leading gateway for the marine leisure industry in Asia. Initiatives here include the establishment of a 1.87 million square meter marine industrial complex which incorporates the functions of boat manufacture, sales, and R&D. We will also develop a number marinas with a total planned capacity of more than 1,700 berths. These marinas will feature all the associated entertainment, accommodation and convenience facilities. And of course the natural surroundings will be leveraged for the promotion of marine leisure sports.
Lets move on now to the development projects being pursued on Gyeonggis West Coast.
Heres a list of some of the key projects. These include the Sihwa Multi-Techno Valley, Universal Studios Korea, Daebu Island & the Seongam District, the Yellow Sea Free Economic Zone, Godeok International City, and many others. In the interest of saving time, allow me to just briefly outline two of these projects today.
First allow me to describe Universal Studios Korea. Universal Studios Korea is a mega-theme park that will be constructed on the West Coast of Gyeonggi Province in Hwaseong City. Universal Parks & Resorts of the US has signed an agreement with a consortium of Korean conglomerates including Lotte Group and POSCO. Under this agreement, a project financing vehicle comprised of 15 partners will raise capital amounting to approximately USD 2.9 billion to be injected into the Universal Studios Korea Resort. Scheduled for completion by 2014, this will be the sixth Universal Studios Theme park in the world. Facilities for this 4.3 square kilometer site include the theme park itself as well as walkways, accommodations, a convention center and a golf course.
Then there is the Seongam Marine Tourism Zone which includes Daebu Island and the Seongnam District. Development here focuses on three complementary zones: The first zone is a tourism development initiative that specializes in various sightseeing themes and includes such features as an amusement park on Daebu Island and a sport fishing center on Jebu Island as well as marine resorts, accommodations and business centers. The second zone is the eco-tourism zone. Not only will this zone provide visitors with opportunities to enjoy the sea and surrounding mountains, it will also include a Tidal Flat Ecological Park, fishing districts and other related facilities. The third zone is the marine leisure zone. This zone incorporates Jeongok Marina as well as Jebu Marina, Helgot ( 螻 ) Marina and Bong-A Meori Marina ( 覦襾碁Μ ). As I mentioned before, these marinas will offer more than 1,700 berths for recreational marine vessels as well as the associated services and amenities.
So what strengths does Gyeonggi Province bring to the table for these or any of the other projects? Well, of course there are the many local and multi-national enterprises found in the province as well as the well-developed infrastructure that supports their operations. This corresponds with our high-tech industrial base with Gyeonggi accounting for 40% of Koreas knowledge-based industry as well as the talented human resources that comprise that base. Also, as we have seen, with a provincial population exceeding 11 million and a combined regional population of over 24 million in the Seoul-Gyeonggi-Incheon Metropolitan Area, Gyeonggi offers substantial market potential. Then there is the strong government support central and provincial as well as city given to the marine leisure industry And, as we focus on marine leisure, we cant forget the beautiful coastline and tidal flats on the West Coast of Gyeonggi Province.
Finally, lets take a look at the annual event that Gyeonggi Province has launched to propel the development of the marine leisure industry on its West Coast the Korea International Boat Show.
The inaugural Korea International Boat Show was held in June of 2008. This was the first show of its kind in Korea, and it showcased the potential of the marine leisure industry in Gyeonggi Province. The other essential component of the event was the World Match Racing Tour - Korea Match Cup. Held in 11 other countries around the world, the World Match Racing Tour is considered one of the most prestigious yachting competitions after the America's Cup. In fact, among America's Cup participants, a dozen teams ranked within the top 16 globally have participated in the Korea Match Cup since the inaugural event in 2008.
The success of the first show in 2008 surprised everyone. Participation by international marine industry enterprises and organizations greatly surpassed initial targets. And visitor attendance at the 2008 event was actually triple initial projections. Building on the success of that and the 2009 event, Gyeonggi Province held the third Korea International Boat Show last June. This show was also a great success. There were more than 121,000 visitors to the show in 2010. This show also saw the participation of most of the worlds top boating brands among the 227 domestic and overseas exhibitors.
This brings us to this years event, the fourth Korea International Boat Show, which will take place again right on the West Coast of Gyeonggi Province from June 8 to 12. Building on the success of the past shows, the 2011 event is projected to be even bigger and will have an expansive range of events both on and off the water with many new features. The improved show site will offer increased exhibition space for all categories of boats and marine equipment. It will also feature lifestyle activities, performances, conferences, investment seminars and more. And, of course, the World Match Racing Tour Korea Match Cup will take place in tandem with the Boat Show.
Allow me to close by repeating that, based on the potential and strengths of the region, Gyeonggi Province is actively developing its West Coast as a hub of the Northeast Asian marine leisure industry. To this end, the Korea International Boat Show is a key feature and your interest, support and participation would be most appreciated. Thank you.
