Chinese investment in property on South Korea's Jeju Island soaring
Jeju residents angry too much land being sold off, too cheaply
The level of Chinese investment in the property sector of South Korea’s largest island of Jeju is soaring — rising 49 times between 2010 and the first half of this year. But it is angering many locals who feel too much land is being sold off, too cheaply.
At the end of 2010, Chinese citizens and businesses owned about 49,000 square metres of land on the resort island. By June 2013, their land holdings rose to 2.46 million m2, Jeju provincial government statistics show.
In other words, the total amount of Jeju properties owned by Chinese investors has increased 4,892 per cent in just two and a half years.
“About 85 per cent of Chinese-owned land is meant for large resorts and hotel developments,” explained Ko Tae-min, a provincial government official with responsibility for attracting foreign investment to Jeju. The remaining 15 per cent were for timeshares at condominium resorts and for small businesses, he told the South China Morning Post.
As of June 2013, Chinese-owned land in Jeju was collectively worth nearly 158 billion won (HK$1.1 billion).
The dramatic jump in property investments coincides with South Korea’s introduction of permanent resident visas to foreigners, who invest in property in Jeju.
Since 2010, foreign investors who invested 500 million won (HK$3.45 million) or more into real estate on the island have been eligible to apply for permanent residency.