Koland, HRH Consortium Sign MOU
- U.S. group to build hotels, resorts in free economic zones to attract tourists

Korea Land Corp. and HRH Construction Co. signed a memorandum of understanding for the development of the tourism and leisure facilities in the free economic zones in Korea with an investment of $3 billion.

The U.S. consortium led by HRH Construction will invest the fund to build tourism and leisure facilities in the Incheon free economic zone and the Gwangyang harbor free economic zone, in addition to the Busan-Jinhae economic free zone,among others, especially in South Jeolla Province.

The consortium includes besides HRH, Trump Organization(Donald Trump as chairman), and Tishman Speyer Properties(Jerome Speyer president). Former U.S. senator Alfonse D'mato is also involved with the consortium.

Those top American business executives visited Korea Sept.15-17 to have a look around the free economic zones and sign the MOU.

HRH Construction with a vast expertise for urban development projects, will set up an overall plan to build hotels and resorts in those free economic zones, along with Trump Group, Tishman Speyer Co. and Marriott Hotels, which would provide a big lift to the project.

The project when completed is expected to boost Korea's image as a hub of Northeast Asia in terms of business, leisure and tourism.

HRH Co., headquartered in New York, and established in 1925, built such U.S. landmarks as Empire State Building, and Madison Square Garden. Trump Organization's major businesses include real estate development, hotels, casino and resorts. Its turnover last year totaled $8.5 billion. It developed the Trump Park, Trump Plaza and Taj Mahal, a casino in Atlantic City, in addition to a number of the choicest buildings on the 5th avenue in New York. Tishman Speyer Properties owns Chrysler Building and Rockefeller Center in New York. Marriott International operates a chain of hotels totaling 2,718 around the world with sales totaling $8.7 billion in last year.The company plans to sign an official contract as soon as it draws up a master development plan.

MOFE expects the project will set off an economic boom creating jobs by attracting domestic tourists to those new luxury tourism facilities keeping them from going abroad for tourism. They believe it will also show foreign investors that Korea is a safe country for foreign direct investment to boost foreign investment in the country.

In the meantime, the Deputy Prime Minister and Finance-Economy Minister called on a number of key business leaders while he was in New York for investor relations in April. He conducted an investor relations session at Pierre Hotel in New York before some 250 U.S. business leaders.

He met with Robert Rubin, co-chairman of Citigroup and Lloyd Blankfein, president of Goldman Sachs,  to discuss the world economy and some key issues in the Korean financial market.

He attended the opening of the Gale Co.' New York office for the development of Songdo city in Incheon? free economic zone where he encouraged U.S. investors to  invest in Songdo.

At the opening, Gale Co., and the Harvard Advisory Group, a consulting firm under Harvard University, jointly announced a plan to invite a number of reputable primary, middle and high schools in the U.S. Eastcoast to set up their extension facilities in Incheon? free economic zone and open them in 2008.

The Free Economic Zone Planning Team held another investor relations meeting in New York May 13-14 before 150 American potential investors at Waldorf Astoria Hotel. Former U.S. ambassador to Seoul, Donald Gregg, who is chairman of the Korea Society, was one of the speakers at the session. He touched on such issues as Korea's rapid economic development and political stability with North Korea's nuclear development program to be solved through a peaceful dialogue.   nw