Korea Inc. goes all out for cutting-edge expo

Industry

Published: 04 Apr. 2023, 06:00 Updated: 07 Apr. 2023, 11:52

Korea Inc. goes all out for cutting-edge expo

A maze-shaped installation with the 2030 World Expo Busan Korea logo is set up in Haeundae Beach, Busan, on Monday afternoon ahead of the arrival of the Bureau International des Expositions (BIE) delegation. The BIE arrived in Korea on Sunday for a six-day on-site inspection to evaluate Busan's bid to host the 2030 World Expo, which is expected to be a pivotal point in the bidding competition. [YONHAP]

Korea Inc. is presenting a unified front to bring the 2030 World Expo to Busan, the country's biggest port city.

Under the theme of “Transforming Our World, Navigating Toward a Better Future,” Busan is envisioning the world's fair to be filled with next-generation technologies and pioneering ideas for a better future.

Boundless economic possibilities are expected to follow the mega-event as well, from a tourism boom to massive infrastructure development. The government estimates that hosting the expo will generate over 61 trillion won ($46.4 billion), create 500,000 new jobs and attract nearly 35 million visitors.

Buzzing with expectation, Busan is busying itself with an ambitious vision for the event, including a new airport, hydrogen transportation, a flying taxi and a floating island. Its plan also includes creating an exhibition space using future technologies such as 6G network, augmented reality, internet-of-things, blockchain and quantum computing.

Over the past 10 months, Korea’s business big-shots of the Busan Expo bidding committee traveled to 85 countries across the globe for lobbying activities, according to the Korea Chamber of Commerce and Industry (KCCI).

The business leaders met with representatives from 130 nations in 440 meeting sessions as of March 29.

As time ticks down before the final showdown in November, Korea is further ramping up its lobbying efforts amid the ongoing on-site inspection from the Bureau International des Expositions (BIE).

“Winning the Busan World Expo bid is a must not only for Busan, but for Korea’s quantum leap forward and balanced regional development,” stressed President Yoon Suk Yeol during a Cabinet meeting on March 28, urging ministers to “put everything into winning the expo bid with the mindset of a salesman.”

Koreans, and especially Busan residents, are crossing their fingers as well.

"Average Busan citizens and local residents in nearby regions, and even those who may not directly be involved in or affected by the expo, are now increasingly getting why and how hosting the World Expo will help the region and the people, much more so than before," said Choi Se-hoon, a spokesperson for the Citizens Committee World Expo 2030 Busan Korea.

As of April 3, over 35,000 messages rooting for Busan's successful bid were posted on the Citizen Committee for the 2030 Busan World Expo's website.

Samsung Electronics promotes Busan's bid to host the 2030 World Expo along with its Galaxy S22 and Galaxy Z Flip4 smartphone models in a large-scale advertisement installed outside the Opera Garnier building in Paris in tandem with the Bureau International des Expositions (BIE) meeting held on Nov. 28 and 29, 2022. [SAMSUNG ELECTRONICS]

"The heat may not have been this intense in the beginning, but Busan citizens became really passionate as of late, actively getting on board with promotional events," Jeong Gyu-cheol, a manager at Busan Tourism Organization, said.

The Busan Tourism Organization set up an exhibition booth at Gwanghwamun Square, central Seoul, as part of a 5-day outdoor promotion event organized by the Busan Expo bidding committee, along with Korea's major companies.

"I came to learn new things about the Busan Expo bid — like, which countries are running against Busan and so on," said a 23-year-old university student from Suwon, who won a bag strap with Busan mascot Boogi the seagull on it in a quiz event organized by the Busan Tourism Organization, in Gwanghwamun on Thursday.

"People are pouring so much effort into this, I hope Busan wins the bid," the student added.

A $46-billion opportunity

Such nationwide zeal is with good reason.

The 2030 Busan World Expo is expected to attract 34.8 million visitors over 180 days and create 504,224 new jobs.

The estimated revenue generated from the expo event is over 61 trillion won, according to the Korea Institute for Industrial Economics & Trade.

Of that figure, the induced production value is projected to reach 43.8 trillion won.

And the added value induced from the World Expo — which includes economic benefits derived from new jobs created in the region, increased spending boosted by infrastructure expansion and more — is expected to reach 18 trillion won.

The estimated economic value of the Busan Expo is double the 29-trillion-won economic benefit generated from the 16-day 2018 PyeongChang Winter Olympics.

“As Korea’s economy is focused solely on the greater Seoul area, other regions outside Seoul are under threat,” said Kim Yi-tae, professor of the department of tourism and convention at Pusan National University and member of the special committee for the 2030 Busan World Expo bid support.

“Korea needs a new pillar for economic development to resolve the disparity, and having such economic pillars in the southern region of the country is expected to contribute to long-term development,” said Kim.

The special committee, co-chaired by Busan Mayor Park Heong-joon, was launched in February with 16 regional government officials and experts.

Hyundai Motor Group promotes Busan's bid for the 2030 World Expo using its global network of retailers across the world. Former Director of Informatics and Communications of the Ministry of Foreign Affairs of Chile Patricio Powell at center, poses with Kia representatives and a Kia car decorated with the 2030 World Expo Busan logo in front of Chile's Foreign Affairs Ministry building in Santiago on Sept. 21, 2022. [HYUNDAI MOTOR GROUP]

Infrastructure megaprojects

Infrastructure expansion, especially, is expected to continue to beef up the local economy in the long term.

In the case of the PyeongChang Winter Olympics in 2018, the Seoul-Gangneung KTX express train railway, which was completed 2 months before the event began, contributed significantly to boosting tourism in the region.

The Gangneung KTX station, which had 1.81 million visitors in 2020, was used by 2.57 million passengers last year, according to Korea Railroad.

The number of tourists visiting Gangwon province reached 153.5 million in 2022, compared to 2018’s 135 million during the Olympic period.

One of the major infrastructure projects for the Busan Expo involves a new international airport near the city.

The upcoming Gadeok-do International Airport is scheduled to begin construction in 2024 and be completed by December 2029. The project timeline has been brought up by five and a half years, as the Ministry of Land, Infrastructure and Transport pushed to help Busan win the expo bid.

“Gadeok New Airport will be essential in contributing to the expansion of new industries not only in tourism but also in air cargo,” said Busan Mayor Park in an interview with the Korea JoongAng Daily last year, emphasizing that the goal is to turn Busan into “an international city much like Hong Kong and Singapore.”

SK Innovation set up a promotional booth in Gwanghwamun, central Seoul, last month in support of Busan's bid for the 2030 World Expo highlighting the company's ultra-fast electric vehicle (EV) charger along with an installation of Boogi the seagull, the 2030 Busan Expo mascot. [SK INNOVATION]

The government estimates the new international airport will cost 13.7 trillion won.

Another 2.5 trillion won will be spent to build an express railway connecting Gadeok Airport and Busan’s downtown area.

Named BuTX, the hydrogen-powered electric train will run about 47.9 kilometers (30 miles) in 26 minutes. On the BuTX train, it is estimated to take 15 minutes to get to the North Port, where the World Expo will be held, from the new airport.

During the expo, Busan also hopes to deploy flying taxis, or urban air mobility, to carry passengers across the city.

Another possible economic booster comes from the 2.5-trillion-won land compensation which will be provided to the property owners at the expo site. The inflow of cash will likely ramp up spending within the region, according to a Busan Metropolitan City report.

If Busan wins the expo bid, Korea will be the seventh country to host all the world’s top three major international events: the World Cup, the Olympics and the World Expo.

Busan previously hosted major global events, such as the APEC summit in 2005 and the Asian Games in 2002.

Busan is ready

“Busan is ready,” as the city’s catchphrase for the bidding promotion goes, for an all-out effort to get ahead of the race.

The on-site inspection from the BIE delegation is expected to be a pivotal point in the bidding competition, as the inspection report will be reviewed by the 171 BIE member countries before the general assembly slated for November in Paris, where the final decision will be made.

The government, politicians and business leaders are firing on all cylinders to one-up its rivals.

Chaired by SK Inc. Chairman Chey Tae-won, who doubles as KCCI chairman, a private sector-led bid committee comprised of Korea's big-name companies was launched in May last year.

Big-name companies including Samsung Electronics, Hyundai Motor, LG, Lotte, Posco, Hanwha, GS, HD Hyundai, Shinsegae and CJ are part of the committee, with each operating a task force to support Busan's bid.

SK chief Chey is leading the lobbying effort in the private sector.

CJ ENM supports Busan's bid for the 2030 World Expo in its KCON 2022 Japan festival with a music video of the ″X4″ project group created to promote the port city to host the global event from Oct. 14 to 16 at the Ariake in Tokyo, Japan. [CJ ENM]

In February, Chey visited Spain, Denmark, and Portugal as a presidential envoy to promote Busan’s expo bid. The SK head also flew to Japan to rally support from the country.

Samsung Electronics Executive Chairman Lee Jae-yong met with heads of state such as the Mexican president, and Hyundai Motor Group Executive Chair Euisun Chung met with 12 ambassadors from African and Caribbean nations to the United States in March.

LG Chairman Koo Kwang-mo visited Poland last year to meet with the country's Prime Minister Mateusz Morawiecki to ask for the country's support for Busan’s bid.

"Busan is Korea's second-largest city, and where LG first began its business," said Koo.

"Many Korean companies sprouted and bloomed in the city to become the growth driver of the country's industry," stressed Koo, adding that "Korean people have a stronger passion for hosting the World Expo than any other nation in the world."

LG Electronics CEO Cho Joo-wan, also known as William Cho, visited Tanzania, Cote D'Ivoire and Ethiopia as an envoy last year.

Government officials and politicians are also joining hands in a rare bipartisan effort to boost public attention.

In Busan, a large number of politicians’ obtrusive and aggressive banners lambasting the opposing parties have been replaced with ones wishing for the success of the city's World Expo bid.

On March 15, the National Assembly’s special committee for the 2030 Busan World Expo approved a resolution, promising bipartisan collaboration and support for the city’s bid.

While the BIE delegation stayed in Seoul for two days before heading down to Busan, an outdoor exhibition was set up at the Gwanghwamun plaza in central Seoul from March 30 to April 3, Monday.

At the event, LG displayed its Omnipod self-driving vehicle, which was first introduced at the CES tech fair last year. The autonomous driving vehicle is meant to be used for a variety of lifestyle activities, expanding beyond the traditional idea of transportation with next-generation mobility.

Using a light-emitting diode signage screen, LG also built a "digital aquarium" where visitors can take a peek at the marine ecosystem in Busan's waters.

Samsung Electronics set up an experience zone for its Galaxy series and Hyundai Motor Group displayed Kia’s EV9 large all-electric sport utility vehicle. Hyundai Motor is also providing eight Electrified G80 sedans and four buses for the BIE delegation during their 6-day stay in Korea.

Busan is competing with Rome, Riyadh and Odesa to host the Expo in 2030.

Korea is bracing for the upcoming fourth competition presentation in June.

"The bid race between the competing countries is likely to only grow more intense from now on," said Prime Minister Han Duck-soo, who is co-chair of the Busan Expo bid committee, during the committee's meeting in March.

"We will bolster lobbying effort in consideration of each country's need, and utilize our resources to the fullest through multilateral discussions and dispatching envoys."

BY SHIN HA-NEE [shin.hanee@joongang.co.kr]