South Korea: Galsa Bay Shipbuilding Project Construction Picks Up Pace

November 8, 2012

Construction works are picking up pace at the Galsa bay shipbuilding industrial complex in Gwangyang Bay Area Free Economic Zone, Hadong County, South Korea that could easily become the ‘waterfront’ industrial cluster of shipbuilding, fully satisfying the demand of land-usage from shipbuilders.

The Hadong District in GFEZ has, for a long time, been developing the favorable surrounding industrial conditions as an optimum location for the steel industry, shipbuilding, etc. The area is a multi-functional custom industry complex for 21st century global business.

In May, Hanshin Engineering Construction paid guaranty money KRW 44.1bn ($37.6m) for the construction contract while Daewoo Shipbuilding & Marine Engineering paid KRW 11bn (approx $10.1 mln) of down payment, accounted for 10% of land purchasing cost and bought 661,000㎡ of land. Construction of offshore plants such as drillships, LNG-FPSOs and LNG-FSRUs is what DSME is aiming for with this project.

Project Outline

Project Title

The Development Project of Industnal Shipbuilding Cluster in Galsaman, Hadong District, Gwangyang Bay Area Free Economic Zone

Participant Lot to the Project

Site Area : 5,613,000m2 – Galsaman Reclaimed Land : 3,174,000m2 – Land adjacent to Galsaman Reclamation : 2,439,000m2

Project Implementation Method

Government-Private Cooperative Development by using the Project Financing

Project Period