23% increase in overseas plantation area over the previous year
The Korea Forest Service (KFS) makes its continued support for expanding overseas bases for forest resources supply. Korean forest companies are extending their investment in overseas plantation so as to secure industrial timber and raw materials for bio-energy.
According to the KFS report on 2014 overseas forest resources development, planted areas by Korean companies reached 43,182 ha in eight countries including Indonesia, Cambodia, Myanmar, Vietnam, the Solomon Islands, New Zealand, Paraguay and Uruguay. It increased by 23 % over the previous year 2013 (34,977 ha). The increased area is 150 times the size of Yeouido (island in Han river)
It was 1993 that Korea started overseas plantation. Since then 27 Korean companies have been doing overseas plantation businesses in twelve countries in Southeast Asia, South America and Oceania. Their total planted area so far reaches 328,000 ha which is 1.8 times the size of Jeju island.? Furthermore, today 93 Korean companies are doing various forest businesses in 22 countries including forest plantation, forest management, forest product processing, etc.
When these overseas forest businesses get into production, it is expected to supply more stable forest resources for domestic industries. To that end, KFS is implementing support policies for promoting Korean companies' investment. The legal base is established by revising "Overseas Agricultural Development and Cooperation Act" to Overseas Agriculture and Forest Resources Development and Development Act (enforcement expected in 21 July 2015) which aims to increase support for overseas forest resources development and improve the international forest cooperation.
In the same respect, KFS carries out a support project of long-term loan with low interest 1.5% for forest investment funds. Other financial support is also provided for overseas forest resources development businesses and 70 % of required funds can be financed for feasibility studies. More information is available to the public at http://www.ofiis.or.kr.
KFS will continue to improve the legal and institutional base and develop support projects with the aim of vitalizing private investment in overseas forest resources development and securing stable supply.