Samsung to withdraw W7.6tr Saemangeum investment plan: report

[THE INVESTOR] Samsung Group is expected to announce the official withdrawal of its 7.6 trillion won (US$6.60 million) investment proposal in the Saemangeum development project this month, the Seoul Shinmun reported on July 13.

Saemangeum is an area comprising reclaimed tidal land situated on the southwest coast of Korea. Currently, it is being developed as a free trade and economic zone. 

The news daily said Samsung’s withdrawal could deal a huge blow to the nation’s largest-ever development project.

Back in 2011, Samsung and North Jeolla Province signed a memorandum of understanding, under which the conglomerate pledged to invest 7.6 trillion won to create a new renewable energy industrial complex from 2021.

But now as Samsung has sold off related businesses such as wind power generation and solar power battery amid its ongoing business restructuring, the group sees no incentives to go ahead with the huge investment plan.

“In the longer term, if we have a big investment plan, we could consider Saemangeum first. But for now we see no reason to do so,” a Samsung executive was quoted as saying.

By Lee Ji-yoon (jylee@heraldcorp.com">jylee@heraldcorp.com)