Korea Plans Leap Into International Meetings Biz

<B> Korea Plans Leap Into International Meetings Biz</B>

By Judy Jacobs

<I>San Francisco</I> - South Korea has ambitious plans to build ten convention centers by the year 2009 in an effort to establish itself as a major meetings and conventions destination. With support from the national and regional governments as well as the private sector, these facilities are being created throughout the country, with the most important of them to be located in Seoul and on Cheju-do (Cheju Island).

The Asia-Europe Meeting--which will be held in 2001 at the newly expanded COEX center in Seoul and is expected to attract heads of state, business leaders and journalists from the organization's 10 Asian and 15 European member countries--is the impetus for convention center development. South Korea and its regional governments are hoping to help revitalize their economies by investing in the convention industry.

In 1997, the Korean government created the Convention Promotion Law. "This law designates and fosters so-called convention cities," said Too-Pyo Hong, president of the Korea National Tourism Organization. "Currently, eight cities are under consideration by the government for special designation. Once the cities are awarded that title, facilities in the city will receive financial support from the government, be given tax reductions and enjoy relatively easy acquisition of building sites."

The Ministry of Culture and Tourism oversees the convention industry in Korea. "MOCT will be the body which will designate the convention cities. Once they do so, the cities will be expected to form organizations similar to the convention and visitors bureaus in the United States. These CVBs will ultimately be responsible for overseeing the convention business within their cities," Hong said.

A combination of public (regional government) and private sector funding will pay for the construction and maintenance of the new convention centers. Of those currently planned, for example, the COEX expansion, which is a part of the Korea World Trade Center, is being funded by the Korea Trade Association.

Another convention center in Seoul scheduled for a 2002 debut is being built and financed by the Lotte World Company, which owns the Lotte Hotel group. The Cheju facility is being funded by the Cheju regional government, KNTO and local private investors. Daewoo Corp., one of the country's biggest companies, has recently announced plans to open a convention center in Inchon, the site of Seoul's new airport, in the year 2002.

Along with the new facilities will come increased marketing efforts on the part of KNTO. "For many years, Korea did not have the capacity to handle large-scale conventions, those requiring seating for more than 5,000 attendees," said Hong. "Now, with the newly expanded COEX Seoul and Cheju International Convention Center, Korea will be able to host large scale events with some of the world's most high-tech facilities. KNTO will push ahead with a strategic alliance plan to promote the country as a first-tier convention destination in the new millennium."

Currently the Union of International Associations ranks Korea 25th in the world in terms of conventions held. Korea's goal is to achieve a UIA ranking of at least 15th by the year 2002.

Korea will concentrate its convention marketing efforts in two places. "Geographically, the target markets will be Europe, which is where the majority of international organizations are based, and the United States, the single largest market in the world for the meetings, incentives, conventions and exhibitions (MICE) industry," Hong said.

Since last year's economic crisis, he noted, holding meetings in Korea has never been more affordable. And he added that Korea is planning to give special yet-to-be-decided benefits to associations that hold their conventions in Korea in 2001, which will be marketed as "Visit Korea Year.