JEJU, KOREA - The number of annual visitors to Jeju Island, located off the southernmost tip of the Korean peninsula, surpassed 10 million on the 28thof last month for the first time since the number was officially tallied a half century ago. Some 7.8 million Koreans and 2.2 million foreigners visited the island this year, up 4.4% and 40.7% year over year. The number of visitors to Jeju this year is higher than the 7.99 million who visited Hawaii last year, and the 8.95 million visitors to Bali. The number is high enough to draw strong attention from overseas investors.
Jeju welcomes the era of 10 million visitors thanks to the UNESCO triple crown, designation as one of the world’s new wonders of nature, and the emergence of low-fare airlines. It also is drawing attention as the most economically active region in the nation due to an increasing number of Chinese investors and visitors. About 65% of the 1.68 million foreign visitors to Jeju in 2012 were from China and as of November 2013, the number of Chinese visitors to Jeju exceeded 1.71 million for the year.
In addition, Greenland Holding Group, China’s largest real estate group, located in Shanghai, is expected to invest about KRW 1 trillion in Jeju Healthcare Town and Landing Group, located in Anhui, has concluded an MOA to develop the island’s Myths and History Theme Park. So it is no exaggeration to say that China started Jeju fever.
Apart from the positive effects of the increasing Chinese investors and visitors, some media reports in Korea express concerns about the potential destruction of nature in Jeju as a result of the Chinese investment and development, which have increased recently due to the rising popularity of Jeju among the Chinese.
Kim Han-wook, Chairman and CEO of Jeju Free International City Development Center (JDC), who is at the center of the controversy, said that such reports are not true. He noted, “JDC is introducing a strict inspection system to attract sound investment and proceeding with thorough screening of investment companies based on information provided by public companies specialized in export and investment and private credit information providers. To prevent reckless development, JDC does not offer business licenses to those that do not comply with the basic purposes of JDC’s six core projects, constantly cooperating with investors from the master plan development stage.
According to Korea’s Hyundai Research Institute, the amount of Chinese capital invested in Korea so far is about USD 1.8 billion, of which only about USD 70 million has been invested in Jeju. Furthermore, the Bank of Korea announced that among foreign investors in Jeju, the percentage of American investors is the highest, followed by Chinese investors. Moreover, only 0.55% of the land in Jeju is owned by foreign investors including 0.13% owned by Chinese. According to the Korean government, foreigners’ land purchase in Jeju is allowed up to 2% of the entire area.
In response to criticism of Chinese investors that have just started investment and development, Chairman and CEO Kim said, “In the initial stages of investment, people may become concerned about sudden changes, but I will actively work to attract overseas investment to develop Jeju as a truly free international city.” He expressed his expectations for Chinese investors’ continued interest in Jeju, saying, “Jeju is such an attractive place to invest that we have more than one Chinese company a week visiting JDC for investment consultation.”
Jeju is strengthening its status as a competitive tourist destination in the international market and a valuable place to invest among neighboring countries. JDC will make further efforts to attract overseas investors, who are proven sound investors after thorough inspection, in order to construct the most desirable free international city.
Meanwhile, when Japan purchased land in Hawaii and Guam to develop its tourism industry in the late-1980s, Time Magazine expressed concerns about Japan dominating the tourism industry on those islands, but now few people would raise such a concern over the issue.
