Regulation stalls Korea’s Paju’s plan to build ‘Ferrari World’ for 3 years

Regulation stalls Paju’s plan to build ‘Ferrari World’ for 3 years
Chae Soo-hwan
2014.03.19 17:43:56
The Paju city’s government announced in 2011 it would build the Ferrari-themed amusement park “Ferrari World” at Baekseok-ri, a location near the railway Wollong Station on the Gyeongui Line, in the city in Gyeonggi province.

But crusty regulation concerning the Seoul metropolitan area and military facility protection and failure to attract investment at home and abroad have suspended progress in the project for three years.
Early this week, Spain announced it signed a business contract with Italy-based Ferrari and would open a Ferrari World in Barcelona by 2016. As a result, the second Ferrari World will be established following the first Ferrari World that opened in Abu Dhabi, United Arab Emirates, in 2010.
Paju was pushed aside in favor of Spain in the competition to attract the amusement park because the Seoul metropolitan area development law, military facility protection law and special US military facility land law cast cloud over investment outlook, driving away domestic and foreign investors.
Paju signed a memorandum of understanding (MOU) in 2011 and said it would invest 1.6 trillion won ($1.4 billion) in total to build a theme park accommodating estimated 40 complexes such as amusement park, car exhibition and luxurious hotels on a 3.7 million square meter land in Baekseok-ri. Following the announcement, South Korean companies such as LG Electronics, GS Engineering and Construction and Woori Bank, as well as foreign investors showed interests. But they have recently withdrew their intention to conduct business or adopted a wait-and-see stance, delaying the projects for the initial phase such as land compensation and infrastructure construction.

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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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