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110516 Gyeonggi Intro (reference)
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Editor's Notes
Governor McDonnell, ladies and gentlemen… good evening and welcome. Thank you so much for being here with us. This evening I have the pleasure of providing you with a brief introduction to Gyeonggi Province.
To do this, I’d like to start by setting the stage with some basic facts about the nation and the 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 world’s population and one-fifth of global GDP. Korea itself is positioned directly between China and Japan. With an estimated nominal GDP of USD 986 billion in 2010 , Korea is the world’s 13th largest economy and the 4 th largest economy in Asia . And with total exports of over USD 466 billion , Korea is the world’s eighth largest exporter . Gyeonggi Province itself is located at the center of the Korean Peninsula and surrounds the Korean capital city of Seoul.
Zooming in… We get a clearer view of the position held by Gyeonggi Province in the nation’s capital region. Bordered to the north by the De-militarized Zone (DMZ) that separates South and North Korea, and to the west by the Yellow Sea, Gyeonggi Province surrounds the national capital of Seoul – marked in blue 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 ( not unlike the Virginia-Washington DC-Maryland situation ), all three together make up the metropolitan area of Korea. This area accounts for almost half of Korea’s total population of 50 million as well as half of its GDP . Gyeonggi Province itself has an area of slightly more than 4,000 square miles – about 1/10 th the size of Virginia– and a population of just over 12 million . The Gross Regional Domestic Product of Gyeonggi for the year 2010 is estimated at USD 165.9 billion while total provincial trade that same year amounted to USD 169.5 billion . So, both in terms of GDP and trade, Gyeonggi Province accounts for approximately one-fifth of Korea’s overall economy.
When most people think of Korea, they tend to think of “Seoul”, “Incheon”, and “Busan”… these names are well known, but “Gyeonggi” is a little more difficult to remember. So the onus is on us to help people remember who we are and what we offer. Of course my colleagues and I think Gyeonggi is a wonderful place, but if you were to ask us to list the top strengths of the province, we would include: Our close proximity to China. Again, Gyeonggi Province lies on the Yellow Sea and is only a few hundred miles away from the eastern seaboard of China. We also offer access to a large consumer market. As just mentioned, Gyeonggi, Seoul and Incheon make up the capital region of Korea and have a combined population of more than 25 million. We are also an IT powerhouse. Not only is Gyeonggi home to some of the world’s leading IT-related companies – Samsung, LG, Hynix and so on – but also, in terms of Internet usage and broadband penetration, we are one of the most wired regions on the planet. Gyeonggi is also home to the lion’s share of Korea’s skilled human resources. With the largest concentration of knowledge-based enterprises in Korea, it follows that we account for the better part of the related personnel.
Well, having said all that, let’s take a look at some of the major industries of the province. By itself, Gyeonggi accounts for more than 80% of Korean semiconductor production, 40% of Korean LCD production, and 40% of Korean automotive production. In this section we’ve listed some of the well-known Korean companies that are leading these industries in Gyeonggi Province.
The names “Samsung” and “Korea” are pretty much synonymous. As you know, Samsung is Korea’s largest conglomerate and one of world’s leading players in consumer electronics, telecommunications, and semiconductors. Gyeonggi Province is home to one of the largest concentrations of Samsung operations with the majority located in the southern area of the province.
A great example of Samsung’s presence in Gyeonggi is the Samsung Complex here in Suwon City. This complex includes the headquarters of Samsung Electronics as well as Samsung Electro-Mechanics and Samsung SDI. Of course, Samsung relies heavily on R&D. So of the more than 26,000 thousand Samsung personnel here in Suwon, approximately 60% are involved in research and development.
Here we have a view of the Samsung Suwon Complex. In fact, from where we are right now, this complex is less than 2 miles in “that” direction… .
A good night shot from the same perspective… It’s worth noting that, because it employs so many people in Suwon City, the Samsung Complex has staggered its working hours in order to avoid causing absolute chaos during normal rush hour times.
And here we have a view of the main gates to the Samsung Suwon Complex. To Samsung Electronics, actually.
And here are some of Samsung’s R&D personnel in their natural habitat.
Then there’s LG. The LG Group is South Korea's third largest conglomerate and a global leader in electronics and telecommunication products. Like Samsung, LG also relies upon the quality of the human resources found in Gyeonggi, and a heavy concentration of LG’s operations are located in the province. This includes the massive LG Display complex up north in Paju City as well as several of LG Electronics operations in the southern area.
Here we have an aerial view of the LG Display complex in Paju City during its development. At the time of its establishment, as a project undertaken in partnership between LG of Korea and Phillips of The Netherlands, this complex represented one of the single largest cases of foreign direct investment in Korean history.
And here we see the same complex from a different perspective… This facility covers approximately 500 acres and functions as a small city unto itself.
And here’s a shot of the LG Electronics’ Digital Park in Pyeongtaek City, which is in the southwest corner of the province.
Then there’s the Hyundai-Kia Automotive Group, which was formed through the merger of the Hyundai Motor Company and Kia Motors back in 1998. It is the second largest automaker in Asia after Toyota and the world's fourth largest automaker after Toyota, GM and Volkswagen. Hyundai-Kia operations are found throughout Gyeonggi Province, but are primarily concentrated in the southern region.
Here’s a view of the Hyundai Kia Motors Namyang Technology Center in the eastern part of the province. This center employs 8,000 R&D personnel.
A night view of the same center…
And the Hyundai Kia testing grounds… The vehicle shown here is the KIA Mohave SUV.
And here we can see the large Kia Motors Plant on the West Coast of Gyeonggi Province.
I won’t go into detail about the automotive industry in the province, but I’d like to point out the large number of automotive part producers, service providers and R&D centers – both domestic and foreign – that have set up operations in Gyeonggi. And this is also true for the semiconductor and LCD industries. Like Hyundai-Kia, both Samsung and LG serve as anchors for large industry clusters in their respective sectors.
And that’s a nice segue into foreign direct investment in Gyeonggi Province. From the year 2007 through to 2010 , Gyeonggi secured direct investment from more than 80 foreign companies amounting to a total of USD 11.8 billion . Overall, of the 37,000 firms with 5 or more employees operating in the province, approximately 3,000 are foreign-invested operations.
Now let’s take a quick look at Gyeonggi’s infrastructure and industrial complexes.
This map provides a clear view of Gyeonggi’s transportation assets. You have already experienced Incheon International Airport, located here on Korea’s west coast. Since 2005, Incheon International Airport has been consistently rated as the best airport in the world by the Airports Council International. There’s also Gimpo International Airport, situated here just northwest of Seoul. In addition to airports, Gyeonggi Province offers access to two seaports: there’s the Port of Incheon just west of Seoul. And then there’s Pyeongtaek Port; that’s located in the southwest corner of the province. And of course there are the road and rail networks that connect the province with the rest of the nation.
And I’d also like to emphasize the compactness and accessibility of Gyeonggi Province. Given favorable road conditions, the travel time by car from the center of Seoul to the outskirts of the province is approximately one hour.
And in order to better serve the manufacturers in the region, a number of industrial complexes have been established in the province. The total area of these complexes – including those completed, under construction and being planned – amounts to almost 25,000 acres. These facilities include national and local complexes (the yellow and green dots on this map) as well as complexes reserved exclusively for foreign-invested enterprises (shown by the pulsating red dots).
Let’s now move on to the development projects being pursued on Gyeonggi’s West Coast.
Gyeonggi Province has three primary strategies for the development of its West Coast: The first is the development of the marine tourism industry. The second focuses on new and renewable energy. And the third is the provision of educational and medical tourism services. Here’s a list of some projects Gyeonggi is pursuing to drive these strategies. These include Universal Studios Korea, Songsan Green City, and the Yellow Sea Free Economic Zone.
The development of Universal Studios Korea is a great example of the projects in this area. In 2010, Gyeonggi Province signed a memorandum of understanding with Universal Parks & Resorts of the U.S. to build this mega-theme park on reclaimed land in Hwaseong City. Slated to open in 2014, this 1,100-acre complex will be the sixth Universal Studios theme park in the world. It’s being constructed by a consortium headed by Universal Parks and Resorts. This area is also the venue for the Korea International Boat Show. This is the largest show of its kind in Korea, and was launched by Gyeonggi in 2008 in order to drive the development of the marine leisure industry on the West Coast.
And just to the south of this area is where we find Pyeongtaek International Port. This port is a primary trade link between Korea and China and provides logistic and distribution services to the greater part of the southern Seoul-Gyeonggi Metropolitan area. This is the fastest growing port in Korea with cargo volume this year projected to be 2 million TEU . Pyeongtaek Port’s current sea routes connect with major ports throughout Asia, Europe and the Americas.
Here we have a good aerial view of part of the port’s facilities…
With a total area of 1.7 square miles, the port and its hinterland facilities are undergoing rapid development…
And I really can’t overemphasize the close proximity of Pyeongtaek Port to China. The distance from Pyeongtaek to Weihai Port in Shandong Province is 230 miles. In fact, the maritime facilities of our West Coast are a central part of the corridor of commerce and exchange linking the two nations.
I’d also like to point out that Pyeongtaek Port is situated immediately adjacent to the Yellow Sea Free Economic Zone. The Yellow Sea Free Economic Zone – or YESFEZ for short – is a newly designated special economic zone that leverages the industrial and structural advantages of the area. YESFEZ has a total area of 21 square miles, and multinationals such as 3M, GM DAEWOO, and Samsung already have operations in the vicinity.
It’s time to wrap up this introduction to Gyeonggi...
Here we have summarized a few key points about the province . I won’t read through these, but hopefully this brief introduction has given you a solid overview about the shape and potential of Gyeonggi Province. Given more time, there is a lot more that could be included…
But I’ll end it here by saying that all of us here really hope that you can experience much more of what Gyeonggi has to offer. Thank you.
