It is forecast that the business conditions of the world will somewhat decline compared to last year. And it is also forecast that the decline of advanced economies -- such as the United States, the EU and Japan -- will be even bigger. It seems to be the general viewpoint of investment experts that the consumption and domestic demand momentum of Korea's economic conditions will somewhat weaken and the probability of conservative investment inclinations continuing is high.
However, we at Gangwon-do believe that this year is a new turning point for not only foreign capital but also the inducement of corporations and investments. We will achieve inducement results through the consolidation of the investment inducement system and strategic investment attraction activities. We plan to concentrate our efforts on investment inducement so that we can accomplish economic advancement, which is a goal of our provincial government.
In this context, we will do our utmost to strengthen the post-management of foreign corporations in our province and to support business activities. Most of the foreign corporations that have come to the province are of small and medium scale, and there are a total of 12. They are mainly distribution and manufacturing companies, and there are a few corporations related to development projects. For instance, there is a company producing plasma display panels (PDPs) and exporting the whole amount to Europe.
Currently, we plan to establish an infrastructure facility for producing functional spring water, cosmetics and drinking water by using deep-sea water. We plan to build industrial and tourism facilities on 40,000 pyong (88,000 square meters) of land by the year 2008. For these, a total of 80 billion won (US$85.7 million) will be invested.
A Japanese company has entered into a joint venture with a Korean company for the production of diverse functional products using deep water and for the tourism resort condominium business.
There is a plan to build two wind power complexes by the year 2008 by investing a total of 148 billion won (US$159 million) for the business of producing new and recycled energy using wind power electricity generation in Gangneung, Hwengseong, and Pyeongchang. The Japanese have invested in this, too.
As you would already know, there are not yet that many foreigner- nvested corporations in Gangwon-do. And the activities, too, have not yet been invigorated.
However, from this year onwards, we will exert all our efforts at investment inducement, including not only foreign corporations but also development investments.
Now, Gangwon-do has set up medium to long-term goals regarding the inducement of foreign capital. In order to accomplish these goals we will unfold investment inducement activities with meticulous plans.
From 2007 we plan to work with a new angle and new determination. Or, in other words, we will approach investmentappealing activities strategically.
First, we will strengthen the investment sales activities both here in Korea and overseas. In the case of this year, we are intending to promote overseas investment sales by making the classification into the Americas, Europe, and Asia and making the division into the first half of the year and the latter half of the year. For the consulting materials, we will perfectly prepare in advance the development of investment products with special characteristics that only our region has and investment products that we intend to attract.
We plan to execute inducement activities through marketing regarding corporations that are appealing candidates for investment.
Also, domestically, we will invite strong potential investors. We are planning to more proactively and aggressively unfold investment inducement consulting activities, including on-site inspections.
Until now, we had engaged in inducement activities through consulting when an investor came to us, regardless of whether he or she was from Korea or overseas. But, now, we will operate a small-sized custommade investment inducement team for unfolding the activities of investment inducement that finds and goes to the investor. This is to materialize investment-appealing consultations by making immediate dispatches within Korea and overseas at all times when a specific object for investment and an enterprise hoping to invest are considered.
And I believe that, in inducing investments, finding out the investment source is a very important thing. In order to find such investment sources at all times, we will operate a system of Korean and foreign investment inducement advisors. This is to select experts in Korea and overseas either working in, or interested in, a field related to investment inducement. Potential investors are excavated through the experts' provision of investment inducement information, advisory roles and PR activities. Networks of investors are formed. And preparations are made for long-term investment inducement activities.
Other than this, we will fortify the postmanagement regarding foreigner-invested corporations active within Gangwon-do.
We will support the investment of foreign capital, including additional equipment investments. I believe that this will prove to be of big help in the activities of foreign capital inducement with the possession of many kinds of investment-related information.
Next, we will strengthen the domestic and overseas PR activities for investment attraction. First, we will provide, as occasion calls, materials related to investment to the media, including newspapers and broadcasting companies and specialized magazines related to investment. Thereby, investors will be able to speedily come in touch with investment information. In this way, we will show the advantages of making an investment in Gangwon-do. We will utilize PR materials related to investment inducement as occasion calls. We will develop and improve the homepage of the investment inducement team.
Thereby, we will always provide new and live investment information to investors both in Korea and overseas. We have the resolution to do our utmost so that a lot of investments can take place in Gangwon-do. In order to induce the 2014 Pyeongchang Winter Olympics, Gangwon-do received the evaluation regarding the given conditions for holding the winter Olympics from the International Olympic Committee (IOC) evaluation team. The important thing was the evaluation regarding the Social overhead capital (SOC) category, including highways and railroads in relation to the athletic teams coming from over 80 countries in the world and over 500,000 tourists coming during the Winter Olympics accessing Gangwon-do from the Incheon International Airport.
The IOC evaluation team recognized nearperfection in this category. Gangwon-do has been recognized as a land of opportunities and possibilities here in Korea. Especially, Gangwon-do has a spacious land area, capturing 16.7% of the national territory. It has a perfect transportation network of highways, railroads and national roads connecting to the Greater Seoul Metropolitan Area, including Seoul and Gyeonggi-do. It is the most important axis in the East Sea economic sphere which includes North Korea, China, Japan, and Russia.
Also, the real situation is that, based on abundant resources, new growth power industries of the 21st century -- including biological, marine life, plasma, and other such industries -- have been coming into the spotlight as the main industries.
I am convinced that such special features and the location of Gangwon-do will prove to be the foundation that will lead the growth of Korea in the 21st century. And we have formulated development strategies and plans that fit them. Accordingly, we have presented the program New Start Gangwon, which means new challenges and a new beginning in the 21st century, for the vision and development strategy of Gangwon-do. And we have prepared a specific strategy for implementing this.
The 7+6 Plan is a system that will last until 2020. It is designed for growth industries to exhibit mutual synergy effects along the transportation network.
The most representative strategic industries of Gangwon-do are the biological, marine life, new materials, and disaster prevention industries. They comprise the life and health industry.
The inducement of the 2014 Pyeongchang Winter Olympics is the dearest wish of not only the residents of Gangwon-do but also all the citizens of Korea. And, it is a great national undertaking for consummating Korea's Olympics. I believe that taking into account the special justification, vision, heritage, and extraordinary organizing capability of Pyeongchang and the ardent wish of all the citizens of Korea, there is sufficient probability of Pyeongchang being selected as the venue for the 2014 Winter Olympics. Because of this and several other reasons I am convinced that the 2014 Winter Olympics will be held in Pyeongchang, which is well-recognized by the whole world.
