Berjaya Land taking FDI in Korea to new levels

Malaysian foreign direct investment (FDI) in South Korea’s real estate sector is poised to soar, especially on Jeju Island, famous as the set of Korean romance drama Winter Sonata and TV series The King and Four Guardians.

This is largely due to local listed developer Berjaya Land Bhd (BLand), which is pumping in an initial US$30 million (US$1=RM3.50) to fully develop the US$3.6 billion Berjaya Jeju Resort by 2017.

Taking advantage of South Korea’s raft of "exemplary" incentives such as its "no visa, no tax" policies, BLand’s undertaking is via

Berjaya Jeju Ltd, an 81:19 joint venture with the Jeju Free International City Development Centre (JDC). Berjaya Jeju Resort has been conceived to be an eco-friendly, world-class integrated tourism and recreational destination comprising:

• The Creek Resort;

• Condominiums commanding views of Halla, Korea’s highest mountain, and the Jungmoon golf course;

• Villas overlooking the East China Sea;

• Wellness spas;

• A full-fledged casino with a 50-storey hotel;

• Another luxury hotel with serviced suites;

• A shopping mall;

• a 6,000-seat indoor arena to host global events such as basketball tournaments and concerts; and

• Generous public spaces.

"We aim for Berjaya Jeju Resort to set the benchmark for future waterfront developments on the island and redefine its waterfront lifestyles," said BLand chief executive officer Datuk Francis Ng at a recent media tour of the development’s 183-acre site along the picturesque Yerae coastline at the southern tip of Seogwipo City.

More than that, because Jeju is "within a one- to two-hour flight radius of a population of 750 million people including those in the Korean peninsula; major cities in China such as Shanghai, Beijing and Tianjin, as well as Tokyo and Osaka in Japan", Ng said the resort will also "establish Jeju as an iconic global tourist destination".

"BLand is confident of the venture’s success as both the Korean central and Jeju provincial governments have been very supportive and helpful, especially JDC which has been wooing global buyers of second homes and visitors to Jeju during their roadshows abroad," he added.

"Also, we don’t expect funding problems as in addition to our reserves, bridging loans will come in once the project goes full swing."

By December, BLand plans to launch some 300 condos with built-up areas ranging from 1,800sq ft to 2,500sq ft at a starting point of US$600psf to US$700psf. It expects take-up to be favourable as local and foreign purchasers in Jeju are exempt from paying real property gains tax.

By The New Strait Times