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22:20 | Aug 16 | 2011

Kim Han Ki: “In Yakutia the investment opportunities are unlimited”

The cooperation between Yakutia and LG Corporation started far in 1995, and since that time the partners’ relations extend yearly. Today the LG representatives in Yakutia are building a modern business centre in the central part of Yakutsk. Kim Han Ki, “LG International Yakutsk” General Manager, tells about the Company’s business in Yakutia.
– Mr. Khan Ki, please share your impressions about life and work in Yakutia.
– I’m sure that the people who live in Yakutia are tough and yet warm hearted. Despite the severe winter frost up to – 40-50 0Ñ, the Yakut people lead an active lifestyle, living the same life as in other regions. The cities and towns are built here, there are agriculture and trade as well as a sustainable social system.
– The LG Corporation has long-standing and close contacts with Russia. What was the way of this cooperation?
– Well, concerning the history of our Company’s cooperation with Russia I need to note that our operating plant for TV sets, refrigerators and other household appliances production bases in the Moscow region for a long time. In many ways, a lot of Russians perceive LG just as a company that manufactures electronic and home appliances.
However, our Company leads the coal mining and metallurgy development along with managing such projects. There is also LG Chemical that produces chemicals and provides the market with top quality construction materials. Thus, LG successfully leads various business in many countries. For example, only few people know that since 1995 LG operates in Yakutia developing coal mining and participating in the complex South Yakutia development project.
– What has the company managed to do in Yakutia?
– The main visible result of our cooperation with the Republic is a modern office building “LG Sakha Centre” with the total area of more than 6 thousand square meters, which is now being constructed by our company on Ordzhonikidze Street in Yakutsk. The construction will be completed by May 2011, a Korean restaurant is also planned to be opened inside.
This project evidences much that LG as a worldwide corporation seeks long-term cooperation with Yakutia. Our company, unlike other foreign investors, got straight to the point instead of loud statements, since the actual plans implementation is more important than pretty words. And we try to develop all sectors where LG performs.
The centre of Yakutsk turned out to look more attractive and modern due to our business centre construction. To some extent we make a self contribution into the city development. We demolished the old buildings stood on the future construction site, and paid a compensation for the residents of the wooden dormitory, which helped them greatly improve their living conditions.
– What prospects for further cooperation with Yakutia do you see?
– Interests of LG in Yakutsk are represented by LLC “LG International Yakutsk”. The prosperity of Yakutia is a condition of our company’s prosperity as well. Every day we are making great efforts to find new possible projects for future cooperation with the Sakha Republic.
The Yakut land is enriched not only with a variety of minerals, but also with an outstanding human potential. Together, this gives two-thirds of the components necessary for a successful business. However, another necessary required component is infrastructure. Large financial investments are essential to develop the energy and industrial infrastructure and mining activities. I believe that in Yakutia there are a lot of industries to invest to. Of course, a market and project economic efficiency assessment, the necessary infrastructure preparation are needed to attract foreign experts.
– Your corporation has always been guided by the principle that the key to success is inside the innovative technologies. Our Republic also draws attention to the new technologies development. How do you see their implementation in Yakutia?
– Often while talking with our staff, I emphasize that Russia, including Yakutia, is rich with various natural resources, proven unique technology, outstanding people, which, of course, directly points to the bright future of Russia. Korea, which could never boast of that all, managed to overcome the difficulties of the industrialization way and climbed at a fairly high level. The most important thing is to take this path step by step. Nobody will do this for us. One should start moving towards success alone with himself. Concentrating on the large capital-intensive tasks only will never let things go from the very beginning.
It is impossible to ensure a proper agriculture development level in small Korea, where population density is very high. Therefore, Korea has taken the way of innovations, started with the consumer chemicals production and carried on with producing technically sophisticated electronic devices such as TV sets, refrigerators, household electronic goods, etc. The initial investment funds provided the country with the financial resources for new development. Thus, the path of innovations has been built upon “simple to complex” principle.
Since the situation in each country is unique, it is difficult to apply the same development pattern for each case. I am sure that the Government of the Sakha Republic looks for a suitable way to lead Yakutia in right direction. I truly believe that Yakut companies should find a certain field of activity to start the business from nothing.
– Do you find Yakutia attractive in terms of investment projects?
– Of course, our company believes Yakutia is rather attractive for investments; otherwise we would not put up solid money and get over enormous efforts to implement our projects. We create our own future. Yakutia investment opportunities are limitless, due to available resources and vast territory.
We do hope that our successful investment experience will become a good example for many foreign companies. We are confident about the promising future of Yakutia and will try to ensure other potential investors to come to the same opinion.
– Your wishes to our readers, please.
– Koreans believe that the Rabbit year of the lunar calendar promises to be rich and generous. I wish a great sucess to the readers of your magazine! Be happy!