KRW 17.7 Trillion Planned, KRW 9.2 Trillion Spent... Jeju to Reexamine 37 Tourism Development Sites

【Financial News, Jeju—Jeong Yong-bok】The amount actually spent under the investment plans for large-scale tourism development projects in Jeju was found to be slightly more than half of the planned total. Jeju Province will revisit 37 tourism development sites, including projects whose designated periods have already ended or are scheduled to end this year, to inspect investment, employment, and participation by local construction companies.
According to Jeju Special Self-Governing Province on the 20th, the 31 tourism development sites required to disclose their first-half performance had combined investment plans totaling KRW 17.6668 trillion. Actual investment amounted to KRW 9.2294 trillion, resulting in an investment implementation rate of 52.2%.
The gap between the planned and executed amounts was KRW 8.4374 trillion. However, it would be inaccurate to regard the entire difference as a failure to invest. Some projects still have until 2027 to 2029 to complete their designated periods, meaning the gap includes investments scheduled for the future. The actual level of implementation must be assessed by considering each project's approval date, construction progress, and project period together.
Of the 7,184 people employed overall, 6,083 were Jeju residents, putting the Jeju resident employment rate at 84.7%.
Local construction companies received KRW 2.9005 trillion out of the planned KRW 5.1197 trillion in contracts, representing a participation rate of 56.7%. The gap between the planned and actual amounts was KRW 2.2192 trillion.
Jeju Province will conduct on-site inspections in October and November at 37 of the province's 43 tourism development sites, excluding the six sites that were completed more than five years ago.
The inspections will cover 21 tourism development projects and 16 recreation area development projects. The 31 sites required to disclose their first-half performance and the 37 sites subject to the on-site inspections are different groups.
Some of the sites scheduled for inspection are still classified as ongoing even though their publicly disclosed project periods have already ended. The project period for Musucheon Recreation Area in Jeju City is listed as ending in June 2020, while that for Sammaebong Valley Recreation Area in Seogwipo is listed as ending in March 2023. Tosan Tourist Site, Baektong Shinwon Jeju Resort, and the first phase of the Namwon Tourist Site project are also listed as having project periods that ended in June this year.

By contrast, Eco Land Theme Park, Aewol International Cultural Complex, and Jeju Nature Experience Park have project periods extending through 2028, while The Jeju Garden, Jeju Shinhwa Historical Park, and Healthcare Town are scheduled to continue through 2029. Since the project stage and remaining period vary widely from site to site, it is difficult to determine whether an individual project is underperforming based solely on the average investment implementation rate.
The central purpose of the on-site inspections is to verify whether the reported figures are actually being achieved at each site. Jeju Province will examine whether the investment, employment, and local company participation data entered by project operators into the tourism development site management system match conditions on the ground.
In addition to project progress, investment performance, Jeju resident employment, and participation by local construction companies, inspectors will review compliance with the conditions attached to development approvals, construction site safety management, and matters agreed upon during environmental impact assessment consultations.
For delayed projects, inspectors will also examine the causes of the delays and future implementation plans. Sites whose first-half performance fell short of their plans will be separately designated for special inspections and intensive monitoring. The inspection results for each site will be published on the Jeju Province website by the end of December.
Another reason for the inspections is that the performance of tourism development projects cannot be assessed solely by the amount invested. To determine the actual impact of large-scale development projects on the local economy, it is necessary to examine not only whether planned investments were made, but also the extent of employment for Jeju residents and participation by local construction companies.
The Jeju resident employment rate was relatively high at 84.7% in the first half, but participation by local construction companies stood at just 56.7%. With the investment implementation rate also at 52.2%, the need to examine differences among individual projects has grown.
The current Jeju Special Self-Governing Province Ordinance on Approvals for the Implementation of Development Projects, etc. requires annual reviews of compliance with matters discussed with relevant departments and approval conditions during the development project approval process. It also requires the inspection results to be disclosed for up to five years after a development project is completed.
Hwang Kyung-seon, head of Jeju Province's Tourism and Exchange Bureau, said, "We will check whether the performance figures entered in the first half match conditions on the ground and whether underperforming sites have improved," adding, "We will identify the causes of delays and expand employment for Jeju residents and participation by local construction companies."


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