Samsung Hints at Moving Into Sejong City
By Kim Hyun-cheol
Staff Reporter
Samsung Group, the nation's No. 1 conglomerate, didn't confirm the rumor that's been floating that an affiliate of the group will move into the new Sejong City, but instead hinted the move is still open to discussion.
"We could play a role if the project is really important for the country," Samsung Electronics President Choi Ji-sung said Tuesday at a press conference during the 2010 International Consumer Electronics Show (CES) in Las Vegas.
Officially, the business group is avoiding commenting on the issue. A high-ranking Samsung official was quoted as saying that the company "has nothing to say about the issue at the moment."
Another rumored candidate, Woongjin, has also been reluctant to clarify its stance.
"We could consider having some research and development facilities or newly invested plants located in Sejong City, but it's not the right time to talk about the issue when the government's plan has yet to be confirmed," a Woongjin spokesman said Wednesday on condition of anonymity.
Samsung and Woongjin were regarded as the most likely first residents of the newly constructed region in the walk up to Prime Minister Chung Un-chan's visit to Chungcheong Provinces last month, as he had said that a conglomerate and a few mid-sized enterprises had hinted at moving to Sejong City.
Samsung has been the talk of the town with the rumor that it will invest in the project with its latest business of biosimilar, or new versions of biopharmaceutical products after the originals' patents expire.
Such forecasts gained more weight late last month, when Samsung's former Chairman Lee Kun-hee was pardoned "to help him lead South Korea's bid for the 2018 Winter Olympics as a member of the International Olympic Committee."
On Tuesday, an official of the ruling Grand National Party purportedly said that a Samsung affiliate is set to move to Sejong City but the business group denied it, saying there was no request from the government and that there was no discussion going on about the plan.
Woongjin was mentioned as a possibility for Sejong due to the company's ties to the region. Its chairman, Yoon Seok-geum, is from Gongju, South Chungcheong Province, where part of the new city will be built.
While the government appears to be desperate to attract big local companies to the city, conglomerates are still reluctant to reveal their views on the matter.
Tuesday's government committee on the Sejong City project confirmed an incentives package for firms that come to the area, including a huge discount on land fees and taxes.
Companies newly moving into the city will have a discount on facility sites ― nearly half the prices in neighboring regions ― and also get tax incentives including a three-year exemption of corporate taxes, according to the plan.
It still remains to be seen, however, how attractive the package will be for local firms. Two other CES participants, LG and Hynix, said they are not considering a move to Sejong City.
"Cheap land prices alone don't guarantee anything," an unnamed official of a local conglomerate said. "Convenience in the conveyance of products and other materials, as well as amenities such as the residential environment, should also be secured. Without them, it won't be easy to attract bigger companies."