After denying its interest in the dedicated industrial zone in Ghilot near Neemrana, South Korea has once again expressed that it’s considering the prospects of the venture. The development has come around in a situation of geopolitical tensions going on in China. As a result, the companies of the East Asian nation are diversifying investments so as to reduce their dependence on China.
Back in March 2013, an MoU (Memorandum of Understanding) was signed between Rajasthan State Industrial Development and Investment Corporation (RIICO) and South Korean Trade Promotion Agency (Kotra). The plan was to set up South Korean zone in Ghilot in the lines of Japanese zone where more than 50 companies are operating at present.
Image Courtesy: newsworld.co.kr
Rajasthan government allotted 300 acres of land for the project and kept waiting for South Korea’s response for more than 4 years. However, it ended in disappointment when Kotra stated their disinterest in the project.
Haikwang Lee, acting ambassador of Korean embassy was quoted as saying, “It’s true that there was no interest among the Korean companies in the Ghilot industrial zone. The problem, as per my understanding, was that the leasing conditions were not favorable for Korean companies. They want ownership of land instead of 99year lease. Also, they wanted land prices at cheaper rates.” Furthermore, he added, “But I want to revive and make the Ghilot industrial area working for Korean companies.”
Image Courtesy: pdipl.in
As per the reports, South Korea is carrying out its annual caravan in Rajasthan with a series of business meets and cultural evenings. The delegation includes top Kotra officials and representatives from 10 companies. Moreover, two South Korean companies are even willing to invest in Mahindra World City, Jaipur.
It is being speculated that this abrupt shift in the business interests of South Korea is a result of the stifling conditions of China. However, Lee says that India has a huge potential and a big market, which is why South Korea is interested in expanding trade & investment in the country.
