Easy Lease Terms for Small Firms
Koland tries to entice small and medium firms to its industrial
estates to spur economic development

The Korea Land Corp. is looking for small and medium firms to relocate their plants in its five industrial estates after designating 247,000 pyeong of the land in the industrial parks as national lease industrial estates.
The designation included 34,000 pyeong in the Tonghae-Bukpyeong Industrial Estate, 45,000 pyeong in the Jechon Industrial Estate, 48,000 pyeong in the Gunjang-Gunsan Industrial Estate, 56,000 pyeong in the Jeonju-Gwahak Industrial Estate and 64,000 pyeong in the Mokpo-Daebul Industrial Estate in line with the state-run company's policy to entice business firms in the economically depressed regions around the country and help them to contribute to regional economies.
The state-run industrial park management company said small and medium firms will be able to lease land in those industrial parks in small lots, instead of buying them, unlike the requirement for large manufacturers which must pay for land to build factories.
Those land in the national lease industrial estates will be available from 500 pyeong unit or larger to suit the needs of small and medium manufacturers, with the lease period from five to 10 years to lighten the financial burden for those firms. They will be able to receive from the government about 30 percent of infrastructure construction cost.
Upon expiry of the first five-year lease period, lessees have the right to exercise their option of either buying the land or release the land for only one time ensuring stable operation of their plants in the industrial parks.
Rent is payable every six months and varies from 3,000 won per pyeong to 5,000 won per pyeong depending on each industrial park and other charges including lease guarantee money and withdrawal guarantee money can be paid when signing lease contracts.
Land is available to lessee upon signing the lease contract, along with basic facilities in the parks. Only small and medium firms and firms relocating to provincial areas will be entitled to lease the land in those five industrial estates.
During the first application period in April, about 60 firms applied and those land still left unleased has been put up for lease from May 4 under exclusive contracts.
A thing that potential lessees would have to remember is that they have to apply for land lease to the Korea Land Corp. and sign contracts with the industrial estate management offices and then sign lease contracts again with the Koland. Details can be obtained from Koland homepage (www.iklc.co.kr)
Koland, in the meantime, will sell three housing lots in the Yongin-Hungdok area joint housing zone totaling 33,802 pyeong at prices ranging from 7.21 million won per pyeong to 7.45 million won per pyeong, which is popular among real end users to build mid-sized apartment buildings.
The qualification for buyers include provisions that they have to be builders of residential houses more than 300 units in the past three years, either companies or individuals engaged in construction business or civil engineering as shown in the registrar, which will enjoy the top priority, with house builders coming in second in the priority.
The applications for purchase of those lots were accepted from May 24-25 and the buyers were selected with computers and contracts signed on May 30 with the selected buyers.
On the other hand, four housing land lots bigger than 85 square meters were sold in June and the Yongin-Hungdok region will be able to distribute its apartments from the end of 2006 when the sale of those lots are completed and buyers ready to move into their new apartments by the end of 2008.
The region is 650,000 pyeong in total areas located in Yonguk-ri, Kihung County, Yongin City, Gyeonggi Province, right by the Gwangkyo Techno Valley 3.35 million pyeong in area to the north, the Yongtong new town with 1 million pyeong in the south with about 5 million pyeong in total area, close to Bundang City with 6 million pyeong in total area.
A total of 9,180 families will be able to move into their new apartments in 2008 when the construction work is completed.

President Kim Jae-hyun of Koland.

Copyright(c) 2003 Newsworld All rights reserved. news@newsworld.co.kr
3Fl, 292-47, Shindang 6-dong, Chung-gu, Seoul, Korea 100-456
Tel : 82-2-2235-6114 / Fax : 82-2-2235-0799