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LG Philips LCD to Build Facilities in Korea
By: Han-Joo Ryoo
2003-04-08
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The South Korean government has approved the construction of a new LG Philips LCD plant in Paju, in the Gyeonggi Province just outside of Seoul.SEOUL, South KoreaThe South Korean government, eager to attract foreign capital, has approved the construction of a new LG Philips LCD (liquid crystal display) plant in Paju, in the Gyeonggi Province just outside of Seoul.
LG Philips LCD faced several obstacles for its planned Paju facilities, including environmental regulations and military issues, but the company received a helping hand from Seoul metropolitan government officials, who negotiated with Korean government officials to obtain regulatory and military approvals for the plant. Military approvals were required because of the proposed plants proximity to military installations.
Although the rising tension on the Korean peninsula caused by North Koreas nuclear program as well as the war in Iraq has led to a sharp slowdown in foreign investments, the Korean government expects that LG Philips LCDs investment will encourage other investors to continue their expansion in Korea. The Korean government is especially eager to establish the country as an East Asian hub for the newest information technology.
LG Philips LCDs investment is expected to contribute close to $2.5 billion to Koreas GDP, create 5,000 new jobs and generate $2.3 billion in exports. The Ministry of Commerce, Industry and Energy (MCIE) has established a committee to coordinate between the different government authorities in an effort to assist LG Philips LCD in constructing the plant.
Gyeonggi Paju is the city that is located near the truce line of the Korean War.
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