A view of a session the Jeju Self-governing Provincial Government held at the Gvalley Convention in Guro-gu, Seoul, on July 6 to attract Korean ICT companies.

Director General Lee Seung-chan of the Tourism Bureau at the Jeju Self-governing Provincial Government.

The Jeju Self-governing Provincial Government is accelerating efforts to attract Korean ICT and BT companies, which will grow hand-in-hand with the island. The provincial government held a session to attract Korean ICT companies at the Gvalley Convention in Guro-gu, Seoul, on July 6. The session was the second time since April that a similar session took place at the Pangyo Techno Valley with 21 companies participating. 

The latest session highlighted Jeju’s investment environment and incentives to investors, the introduction of the placement of the projected 2nd Advanced Science and Technology Park, successful examples of companies moving to Jeju and support to startups at the Jeju Center for Creative Economy and Innovation. In particular, P&I System, which became the first company in Jeju to be listed to the KONEX last year after moving there, was introduced as a success story. The company moved its headquarters to the Jeju Advanced Science and Technology Park in 2011. 

Following the session, representatives of companies interested in moving had one-on-one meetings with provincial government officials. 

While delivering an opening speech at the session, Director General Lee Seung-chan of the Tourism Bureau at the Jeju Self-governing Provincial Government said, “Our province, which recorded a high economic growth rate of a range of 4 percent in the past few years, continues to grow with a net rise in population. 

And I believe that this growth is attributable to relocated companies which have built new industrial foundation through a rise in employment and sales.” Likewise, Lee said, relocated companies, contributing to one axis of the economy of Jeju, serve as a force behind continued growth of the economy through advanced technology, capital and collaboration of creative minds. 

Jeju is evaluated to have a work environment that companies favor since the eco-friendly environment encourages workers to have creative minds, he said. 

Dir.-Gen. Lee said the provincial government is focusing on attracting IT companies and venture firms which create added values without damaging the environment and burdening of logistics costs. 

The move has paid off: prominent IT companies and venture firms with a competitive edge like KaKao and Neople have successfully settled in Jeju. The provincial government, he said, plans to continue efforts to create an environment for relocating companies and implement a support system in cooperation with related organizations so that such creative companies can move there in a continuous fashion. Starting September, the Jeju Free International Development Center (JDC) will begin providing a space for relocating companies by remodeling structures in the 1st Advanced Science and Technology Park, Lee said. 

He added that the provincial government is preparing for such incentives as the offering of support in structure rental fees, costs for purchasing equipment and components, and employment subsidies to companies qualified for moving there. The provincial government plans to give a higher percentage of the “Happiness Housing,” to be built at the 1st Advanced Science and Technology Park, to employees of relocated companies to ease the housing shortage. Jeju plans to build the 2nd Advanced Science and Technology Park to induce more relocated companies. 

Jeju’s carbon-free project calls for the creation the 4th Industrial Revolution by fostering new and renewable energies, as well as the EV industry, and making Jeju a “smart tourism” island by connecting the whole of the island with WiFi and IoT internet. Jeju is attracting about 16 million tourists annually, Lee said. 

Jeju’s Geological & Economic Environment

Jeju Island is an important hub located at the center of Korea, China and Japan. Fifty cities, each with more than 1 million of population, are located within two hours of flight, so its tourism and business sectors have huge potential to be the center of Northeast Asia. In April 2002, the Korean government designated Jeju as an international free city to nurture it as a tourism, recreation and business center of Northeast Asia in the 21st Century. Jeju offers tax credits to Korean and foreign investors and leading projects in place. 

Jeju attracts more than 10 million Korean and foreign tourists annually. There are 56 direct flight routes, including 43 international routes, operating to and from the island daily. Half of the casinos catering to foreigners in Korea are located in Jeju. The island has diverse tourism and leisure facilities, including 191 tourism accommodation facilities, six duty free shops as well as 34 golf courses, 62 museums and art galleries. 

Among the winners of new seven wonders of nature announced on Nov. 11, 2011 were Jeju. Jeju Island achieved UNESCO’s coveted “Triple Crown," a Biosphere Reserve in December 2012, World Natural Heritage in June 2007, and Global Geopark in October 2010. It was the first ever UNESCO designation in three areas, including Jeju volcanic islands and lava tubes. 

In January 2005, the Korean government designated Jeju as an island of international peace. Global leaders, including former U.S. president Bill Clinton, former Russian president Mikhail Gorbachev, and ex-Chinese president Jiang Zemin, visited Jeju. Ten ASEAN leaders held summit talks in June 2009 and Korean, Chinese and Japanese leaders assembled for summit meetings in June 2009. 

Jeju was certified as a healthy island by the World Health Organization (WHO). The island boasts of 137 national and other properties as well about 8,000 kinds of animals and plants. 

Jeju, Optimal Location for IT Companies

Unlike Japan, Taiwan and other Asian countries, Jeju is free from earthquakes. The island, located far from Korea’s mainland, is considered safe from inter-Korean conflicts and accidental clashes, as Jeju pursues an island of international peace. 

Jeju’s clean image corresponds to that of the IT industry, as the island, honored with the UNESCO’s Triple Crown, is pursuing a global environmental hub. 

Jeju has sufficient facilities to meet electricity and telecom needs without interruptions. Power costs are lower than those of neighboring counties. 

Officials from the Jeju Self-governing Provincial Government are busy in explaining the strengths of the island to officials of companies, which are interested in relocating them there during a session to attract Korean ICT companies at the Gvalley Convention in Guro-gu, Seoul, on July 6.

Nurturing Advanced Industries like IT, BT

Jeju designed advanced IT and bio technology as core projects in accordance with the 1st International Free City Master Plan. Under the plan, Korean prominent IT companies, including Daum and Nexon, moved to the island. 

The provincial government has laid a foundation to develop advanced Industries, including IT and BT with the creation of the 1st Advanced Science and Technology Park covering 1.099 million sq. meters. Ninety companies, including Daum, have signed contracts to locate there. All industrial site areas have been sold out to 23 companies, including Daum and ESTsoft. Support facilities now accommodate 94 companies and institutions, including the Korea Basic Science Institute Jeju Center and IBM Korea. The Jeju Lava Seawater Industrial Complex covering 14,260 sq. meters in at Handong-ri, Gujwa-eup, has 11 plots for industrial facilities in such sectors as beverages, foods and cosmetics and three other plots for support facilities. 

The Jeju Venture Maru covering 14,260 sq. meters in Ido 2-dong, Jeju City, aims to accommodate 50 tenant companies in such advanced industries as IT and BT. 

The provincial government plans to expand subsidies and financial support as part of efforts to expedite investments into the advanced industries. 

Offiials of the Tourism Bureau at the Jeju Self-governing Provincial Government hold a one-on-one meeting with representatives of a company wanting to move their company to Jeju following a session designed to attract Korean ICT firms. (Photos: Jeju Self-governing Provincial Govt.)

Support for Relocated Companies, Eco-friendly, Advanced Industries & Call Centers

Beneficiaries for support include IT, BT companies; and those in the knowledge-based, telecommunications, and telemarketing service industries. Real estate, consumption-centered service industries, and construction are excluded. 

Qualifications for relocation support include companies with more than 30 regular employees and those operating for more than three years in the Seoul metropolitan area. Companies in specialized industries and knowledge-based industries are required to have more than 10 regular employees. 

Companies located in the Seoul metropolitan area are eligible for subsidies, including site allocation (40 percent), facility investment (22 percent) and educational training subsidy based on real costs. They are eligible “easy loans” to SMEs. The provincial government extends 4 billion won and 500 million won in facility and operation funds, respectively, to each beneficiary, while the Small and Medium Business Corp. offers 3 billion won in facility funds. 

They are entitled to a 100 percent exemption in corporate tax for six years and a 50 percent exemption for three more years. Acquisition and registration taxes are fully exempted, while no property taxes are levied during seven to 10 years.