Will shell-shocked Japanese head to Busan?

2013-09-11 16:53

Will shell-shocked Japanese head to Busan?

By Kim Young-jin, Baek Byung-yeul
BUSAN – Not long after the earthquake and tsunami of March 2011 devastated Japan’s eastern coast, local media speculated that jitters could prompt Japanese to flock to Korea’s second-largest metropolis.
While the southeastern port city ㅡ close enough to Japan’s Fukuoka to reach by ferry ㅡ has not seen such a boom, plans are underway to capitalize on a growing number of Japanese wanting to stay overseas for extended periods.”Busan is good for long stays because of the resort-like area, beaches and easy access to the subway system,’’ said Michiko Aoshima, a researcher at Longstay Foundation, a Japan-based group that supports people who wish to stay in other countries for over two weeks.
Aoshima said the disaster, which caused caused significant damage to the Fukushima Daiichi nuclear power plant, was “one of the reasons” for the increase in ”long stay’’ trips. Many of those travelers head to Southeast Asia, particularly Malaysia, known for its flexible visa policies, she added.
The establishment of a Longstay Foundation branch in Busan last year has sparked hopes that the city, in particular it’s beach-laden Haeundae district, will be the next hotspot for long stays.
The foundation is operating a tour to Busan this month that will include seminars on residing in the port city and visits to apartment buildings and healthcare facilities. Scheduled for Sept. 28 to Oct. 2, it will be operated in conjunction with Korean tourism firm COBIZ and the Korea Tourism Organization.
Other preparations are underway, such as COBIZ’s construction of Longstay Tel, a 25-floor residential building in the Haeundae-gu district, which will offer longer-term accommodation. The firm wants to sell the building’s 259 units, at 58 million won (about $53,300) each, to investors who can lease the apartments. According to the firm, five Japanese investors are interested in purchasing units in Longstay Tel, which is slated to open next fall.
The number of Japanese residents in Haeundae, though relatively small, has risen in recent years, climbing from 129 in 2008 to 269 this year, according to the Haeundae District Office.
However, several real estate agents said they had yet to see a major increase in customers from the neighboring country. Ohtsuka Tsyoshi, deputy consul general at the Japanese consulate, said there had been no major increase in Japanese residents since the earthquake and tsunami. One Longstay Foundation officer, however, said it may only be a matter of time.
”They don’t necessarily cite it as a reason, but we’ve seen a growing number of Japanese ask for information about living in Korea after the earthquake,’’ the officer said on condition of anonymity, citing the foundation’s policy. ”This is why we opened the Busan branch.’’
Busan resident Hidetaka Omichi, president of YK Steel, an affiliate of Japanese steel company Yamato Industry, agreed about the potential for Busan to become a popular destination.
“I have lived in Busan for over seven years, and I love to stay here,” said Omichi, who was formerly the head of the Busan Japanese Association. “As the surrounding environment of Busanㅡ  where you can easily reach the seaside ㅡ is very similar to regions of Japan, many Japanese people say Busan is a very intimate place to live.”
Most members of the Japanese association, according to Omichi, are living here for work. He said most return home after their terms of service, but that a changing economic environment in the region could change that.
“Many young people I have talked with want to establish a more integrated relationship between the two nations in the future, letting the past become water under the bridge.”
Diplomatic tensions have flared recently between the sides over historical issues such as the Seoul-controlled Dokdo islets, which Tokyo also lays claim to. Residents say this may behind what they believe to be a drop in Japanese tourists.
Omichi said in the long run, geopolitics wouldn’t deter Japanese from visiting Busan.
”I’ve heard that many Japanese are afraid to visit Korea due to the recent diplomatic dispute between the two countries. But as far as I know, I can’t see any conflict on a person-to-person level,’’ he said.

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Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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