Busan is good

Busan City, Shinsegae Chelsea sign MOU Premium Outlet.

Contents

On February 27, in Busan City Hall’s International Conference Hall, a memorandum of understanding (MOU) was signed with Shinsegae Chelsea Co. Ltd., a joint venture between Chelsea Korea and Shinsegae, for the establishment of a Premium Outlet Center in Jangan-eup, Gijang County.

Shinsegae Chelsea handed its project proposal to Busan City in December 2006, which led to the MOU ceremony. In order to sign the MOU, Mr. Michael Clarke, President of Chelsea Property Group and Chelsea Korea visited Busan.

The major contents of the MOU are that:

- Shinsegae Chelsea will invest 100 billion won (including US $25 million in foreign investment) to develop upscale outlets on a proposed site (159,000㎡) in Jangan-eup, Gijang County.

- Busan City will provide the land with an appraised value until the end of February 2009.

Busan City considers that the construction of this upscale outlet center in Busan will help to create a big ripple effect on local economic development.

This economic effect has already begun with the attraction of approximately 100 billion won in investment for this project including US $25 million of foreign investment. When the outlet centers open, they will create jobs for about 1,000 people and it is anticipated that 4 million domestic and foreign tourists will visit the outlets annually to obtain 40 to 70 percent discounts on famous luxury brand-name items.

Moreover, this project will make a big contribution to enhancing competition and in expanding tourism infrastructure along with the East Busan Tourism Complex and the Haeundae Special Tourism Zone.

Busan City and Gijang County will give active administrative support for the success of the project and will promote the establishment of the East Busan Tourism Complex and develop the adjacent areas.

* For more information : Investment and Development Planning Team 888-8492