By Jane Han
Staff Reporter
Transforming one of South Korea's most underdeveloped areas into a Dubai-like business haven is a catchy item on ``CEO President'' Lee Myung-bak's long to-do list.
The former executive of industrial powerhouse, Hyundai Engineering and Construction, announced in mid-January that the massive land area reclaimed from the Saemangeum project in the country's southwestern coast would be used to erect a major international financial, logistics and tourism hub.
His new plan is a 180-degree turn around from the original initiative. Before, the Roh Moo-hyun administration planned for more than 70 percent of the recovered land for farming, but Lee dropped the agricultural usage ratio down to 30 percent, allocating the remaining majority to the ``Dubai Plan.''
Kang Hyun-wook, heading the Saemangeum development task force under the presidential transition team, told reporters last month that the project will include building a new port with enough capacity for 300,000-ton ships and a logistics complex on 2,010 hectares.
He added that a multifunctional complex near the foreshore, will also be constructed ― all of which will revamp the entire area, more than six times the size of Manhattan, by 2010.
The Saemangeum land reclamation plan, covering the country's largest area of tidal flats in North Jeolla Province, is a project that dates back to the late 1980s.
First pitched by former President Roh Tae-woo in 1987 to attract regional voters, the mammoth construction of 400 square kilometers took about 15 years and a few presidents to reach completion in 2006.
A 33-kilometer-long seawall, the world's largest, was built to transform the wetlands off the country's southeastern coast into farmland and a freshwater reservoir.
The 2.1 trillion won project stirred controversy from the get-go, as environmental groups claimed that the work would destroy the country's most crucial wetlands area for shore birds and waterfowl, and wipe out a rich fishery resource.
Conservationists and a group of area residents filed a joint lawsuit in 2001 to stop the move, and won in February 2005, which called on the government to modify the project. But the ruling was overturned on appeal, as the highest court said there is not enough evidence to back up the claims made by the environmentalists.
The provincial government and residents supporting the development have since had their hopes raised that the revamp will bring forth economic revival in the region. But their lingering question was how this new, gigantic piece of land is to be used.
The Saemangeum project was a returning favorite on the presidential campaigners' list of pledges over the past two decades, and the most recent election was no exception.
At one point or another, candidates made a Saemangeum promise on the campaign trail, as they were well aware of the significance of wooing Honam area voters.
Former Minister of Health and Welfare Rhyu Si-min said that 100 golf courses should be built on the reclaimed land. Former Unification Minister Chung Dong-young said a giant flower market should be crated, while former Democratic Party leader Chough Soon-hyung said he would transform Saemangeum into a city like Shanghai.
Among the pledges was President Lee's plan for a contemporary city modeled on Dubai, as the new head of state is known to be a strong believer in the Middle Eastern city's success.
One of the first appointments he made was to name David Eldon, chairman of the Dubai International Financial Center, as co-chairman of the committee to boost national competitiveness.
Dubai, an economic success story, which many developing countries are seeking to benchmark has also been a role model for Seoul.
During a visit by Mohammed Al Shaibani, CEO of the Investment Corporation of Dubai, to Seoul earlier this month, Lee was quoted as saying to him, ``The world has changed greatly since I visited Dubai in the late 70s, and I feel that South Korea has a lot to learn from Dubai.''
The new President asked that the chief of the investment body cooperate in making ``large investments in my country.''
To this offer, Al Shaibani reportedly said Dubai is planning to set up a $20 billion fund to invest in South Korea, including the Saemangeum project.
Lee's transition team added that aside from this, six other overseas funds have submitted letters of intent to make investments in the land reclamation initiative as well.
Eldon told a news conference in January that potential investors want to be sure that they will be guaranteed strong returns of their investments.
Although the British financial expert acknowledged the ambitious plan, he warned that there are obvious differences between Dubai and Korea.
``One of Dubai's key attractions is its very low to zero taxation and independent regulators, in addition to its large expatriate community,'' Eldon pointed out, adding, ``Korea is unique. The best practices of Dubai should be applied to Korea.''
Despite the rough sketch benchmarked from Dubai, Lee's team has yet to work out the details regarding these matters.
The fresh plan, as expected, didn't go without getting another attack from opponents.
Immediately after the announcement of modified plans, the Democratic Labor Party (DLP) claimed that Lee's plans are rosy, but not realistic.
The progressive party said devoting 70 percent of the reclaimed land for industrial purposes will require an astronomical amount of money to complete.
``Calculations show that about 3 to 6 trillion won is needed to convert 30 percent of the empty land into a business complex, so that means upping the ratio to 70 percent will require more than double the amount of money,'' it said in a statement.
The DLP also argued that such a grand-scale industrial complex is unnecessary considering the low domestic demand.
``The new project, if completed, will create a fresh compound that will be the size of almost 40 percent of the total industrial complexes spread out nationwide,'' it said, raising doubts to how the incoming administration plans to fill the vacancy.
Environmentalists also started voicing concerns again, as they worry that the aggressive groundwork will damage the coastal area even more.
And opposition came from the opposite side of the coast, too, as leaders from the Gangwon Province grew anxious that a possible casino, opened to Korean nationals, within the Saemangeum zone will steal their customers.
Currently, Kangwon Land Casino in the eastern coastal province is the nation's only gaming facility permitting entry of Korean nationals.
As Lee's administration settles into place, more questions will surface on the direction Saemangeum will take.
Critics wonder whether the renewed project will be just another disappointment for the Jeolla residents, who have dealt with being letdown president after president.
Some say that this time things will really change since the country's first CEO president brings with him an extensive background in the construction industry, and he promised economic revival.
But other interest groups and pessimistic regional residents say they're now used to broken promises.