Jeju Free International City Development Center (JDC) has repurchased about 80% of the land for the Yerae resort residential complex, a project halted for more than 10 years. JDC plans to begin procedures early next year to shift the existing amusement-area development into an urban development project. At Jeju's Second Advanced Science and Technology Complex, it is also pushing to build a 40 MW artificial intelligence (AI) data center powered 100% by renewable energy.
Song Seok-eon, JDC chair, said at a press briefing at JDC headquarters in Jeju City on the 28th, "The two ailments JDC is currently suffering from are the Healthcare Town and the Yerae resort residential complex," adding, "I will make sure both projects are normalized within my term." He added, "Beyond simple real estate development, we will foster projects suited to Jeju's character, such as AI and international education, and leap forward as a 'New JDC.'"
Work on the Yerae resort residential complex was halted in 2015 after the Supreme Court ruled the project approval and forced expropriation of land invalid. JDC has been renegotiating with original landowners to repurchase the project land. Song said, "The current repurchase rate is close to 80%," and, "We plan to start procedures early next year to convert it into an urban development project." The goal is to move away from the existing amusement-area development model and draw up a new development plan that can attract private investment.
The normalization of the Healthcare Town is also underway. JDC signed a business agreement in June with Green Jeju Healthcare Town LLC to acquire assets within the business site, including an unfinished hotel. It plans to sign a final asset acquisition contract within the year and devise ways to utilize facilities where construction has been halted. It is also considering changing the planned water park site into a medical research and development facility.
AI is the business JDC has put forward as its new growth engine. Along with Jeju Province and others, it is conducting a planning and feasibility study for the "Jeju-region AX (AI transformation) grand transition project." The core is to build a 40 MW green AI data center in the Second Advanced Science and Technology Complex. The plan is to combine renewable energy with AI and attract corporations and research talent in energy, aerospace, bio, and mobility to Jeju.
JDC said it is discussing cooperation on building and operating data center infrastructure with major domestic information technology and telecommunications corporations. Song said, "We will create AI infrastructure that Jeju residents and local corporations can actually use," adding, "Our goal is to establish a sustainable business structure in partnership with private capital."
It will also expand startup investment. JDC plans to invest in new industries such as AI and mobility using investment funds created with the Ministry of Land, Infrastructure and Transport and others. Park Jae-mo, JDC head of industry promotion, said, "Thanks to the initial public offerings of corporations JDC invested in, we are on the verge of paying our first dividends," adding, "This year we plan to secure approval for additional capital contributions from the Ministry of Land, Infrastructure and Transport (MOLIT) to increase our investment funds."
Song also cited regulatory issues on designated duty-free shops and the tax burden on held land as areas for improvement. He said, "Jeju's designated duty-free shops face difficulties boosting sales due to the $800 basic duty-free limit, restrictions on product categories, and store size limits," adding, "There is also the problem of fitting products combined with new technologies, such as smart glasses, into existing category classifications."
JDC is also consulting with Jeju Province and the Ministry of Land, Infrastructure and Transport (MOLIT) on the comprehensive real estate tax imposed on its held land. Song said, "Compared with other public corporations, I believe there is an issue with tax fairness," adding, "We will continue to consult with relevant agencies so the related laws and the local government ordinance can be revised."
He said, "The 'New JDC' is a commitment to improve relations with residents and broaden our business scope into advanced industries," adding, "We will proceed without delay on groundbreaking for zone 2 of the Myth and History Park and the opening of a new international school in the Jeju Global Education City."