From tomorrow the resort island of Jeju, in south west Korea, will have the status of a special self-governing province. Around 350 policy areas will be conceded to the authorities in Jeju, although decisions over diplomacy and defence will remain within the powers of central government. The provincial government will have autonomy to licence casinos, set taxes and adopt its own policies for education and health care. It will even have a separate police force. At present there are five casinos in Jeju and a racetrack.

The reasoning behind the move to grant autonomy to Jeju is to allow it to attract more foreign investment by removing constraints imposed by national regulations. It is hoped that the island will develop as an international business and tourist destination. However, the Korean government is dragging its feet over lowering the level of regulations that would allow Jeju to compete with free trade zones in other countries, and cancelled a plan to ease labour regulations.

The recently re-elected Governor of Jeju, Kim Tae-hwan, has pledged to attract 8 million tourists to the island and more than double income from tourism. The new government intends to provide excellent educational and medical facilities by allowing foreign companies to build international schools and hospitals. Locals on Jeju Island view the changes with mixed feelings of optimism and pessimism, some claiming that the focus is too much on foreigners.

So far much of the anticipated interest from foreign companies has failed to materialise and, unless central government further relaxes its stance, barriers to foreign business remain high. (E-06.30.06)

© Copyright 2006 CasinoCompendium



>>> return to archives
>>> return to frontpage