“While we have established systems and facilities such as international schools and medical tourism, Jeju's own internationalization has not yet been achieved. We need to undertake projects that align with JDC's core identity, separate from development projects.”
Song Seok-eon, the chairman of the Jeju International Free City Development Center (JDC), made these remarks during a press conference held on August 28 at the Jeju Science and Technology Park. He explained the concept of 'New JDC,' which aims to shift from hardware-focused projects that develop large sites and attract foreign capital to an organization that enhances Jeju's overall international capabilities through education and international exchange.
He stated, “Our recent management evaluation results were embarrassing,” adding, “I have spent considerable time reflecting on how JDC can rise again.” Song previously announced a new management policy titled 'A New Beginning, New JDC' at the end of June, following the recent evaluation results.
JDC was established in 2002 as a public enterprise under the Ministry of Land, Infrastructure and Transport, tasked with developing the Jeju International Free City. While it has pursued projects aimed at internationalization, such as international schools, medical tourism, and tourism complexes, the actual operations have primarily focused on large-scale real estate development and sales.
Song diagnosed that continuing solely with this approach would make it difficult for JDC to sustain its role. He noted, “There are limits to ongoing operations based solely on civil development projects,” and emphasized the need to consider what businesses can continue on the developed sites for JDC to persist.
The first task of New JDC is to normalize existing development projects. Song highlighted, “During my tenure, I will focus on normalizing the Yerae resort residential complex and the healthcare town.”
The Yerae resort residential complex, located in Yerae-dong, Seogwipo City, has been suspended for an extended period due to a court ruling that deemed the land acquisition and project permits invalid due to insufficient public interest required for amusement parks.
To resume the project, JDC is in the process of repurchasing land that was previously sold back to the original landowners. Currently, about 80% of the project site has been reacquired. JDC is also discussing with Jeju Province the possibility of transitioning from the existing amusement park model to a private investment-based urban development project. Song stated, “By the end of this year or early next year, we expect to clarify the direction of the project model.”
The healthcare town project has also faced setbacks, with the second phase of construction halted due to restrictions on foreign investment imposed by the Chinese government. JDC and Jeju Province are negotiating with the Chinese Green Group to find a way to normalize the project, but a specific timeline for resumption has not yet been established.
Song also pointed out the need to address the decline in sales at the designated duty-free shops, which are a key revenue source for JDC. Sales at JDC's duty-free shops, which had increased to about 650 billion won during the COVID-19 pandemic, dropped to approximately 390 billion won last year.
The Jeju duty-free shop is limited to 16 categories of products, with a purchase limit of $800 per transaction and six transactions per year. Song emphasized that products like smart glasses, which are difficult to categorize under the existing system, are increasing, and he is in discussions with regulatory authorities to improve the system. He also noted, “We cannot solely rely on the duty-free business,” and is exploring ways to diversify the business structure to secure revenue from various fields, including development projects and investments in advanced industries.
A key candidate for new revenue generation is the AI data center. Jeju Province and JDC are considering establishing a public AI data center with a capacity of about 40 MW in the second science and technology park. The plan is to not only sell industrial park land but also to build and operate the data center in collaboration with private companies to secure long-term revenue. Song reported that companies like SK and KT are exploring the possibility of participating in the project.
Additionally, a planning study for the 'Jeju AX Transformation Project' is currently underway. Once the study results are available at the end of the year, JDC plans to propose the main project to the government.
JDC is also expanding its investments in startups. The seed money directly invested by JDC into the policy fund currently stands at about 2.8 billion won. After obtaining approval from the Ministry of Land, Infrastructure and Transport, an additional investment of about 1.5 billion won is expected to increase the direct investment amount to just over 4 billion won.
If JDC faces a shortage of funds for large-scale projects in the future, it is also considering the possibility of issuing institutional bonds. However, given the stricter management of public institution debt, any such move will be evaluated based on project viability and repayment capacity.
Another focus of New JDC is to enhance the internationalization capabilities of Jeju residents, moving away from a development-centered approach. JDC is looking into ways to connect the existing infrastructure of international schools with the local community, expanding English camps and exchange programs for middle and high school students in the province.
Song stated, “Creating an environment where locals can respond in simple English when foreigners ask for directions is also a vision for an international free city,” and added, “We need to expand soft projects like education and exchange, separate from real estate development.”
* This article has been translated by AI.
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