PHNOM PENH ― Booyoung Group, the nation’s 19th-largest conglomerate and one of the leading house builders, has launched a project to build the largest-ever urban complex in Phnom Penh, Cambodia.

The company held on Tuesday the groundbreaking ceremony for Booyoung Town I, a comprehensive commercial and residential town including high-rise buildings, sports centers and schools.

The event was attended by Booyoung Group chairman Lee Joong-keun, Cambodian Land Minister Im Chhun Lim, Korean Ambassador Kim Han-soo and some 100 Korean subcontractors.

As the first phase of the extensive construction, some 17,660 units of residential apartments and commercial complexes will be built on 236,000 square meters of land in central Phnom Penh.

“Our initial goal is to complete 10,000 units by the end of next year, on the premise that the material supply turns out as planned,” said a Booyoung official.

The Booyoung Town construction is the single-largest residential project in the history of the Southeast Asian state and is directly administered by the Ministry of Land Management, Urban Planning and Construction.

Under the Cambodian government’s incentive policy, allowing foreign investors to own land and to buy buildings, Booyoung purchased the site at favorable conditions, according to officials.

“We hope that Booyoung Group’s investment in Cambodia will help convince all Korean and other foreign investors to invest in construction and real estate here,” said the Cambodian Minister Im.

Cambodia’s economic growth increased steadily from 6 percent in 2010, to 7.1 percent in 2011, and to 7.3 percent last year, according to the ministry.

Also, the investment amount for the construction sector, both from local and foreign investors, amounted to $2 billion, which was a 72 percent increase from the previous year.

Korea, as of last year, was the largest foreign investor state in Cambodia, with $272 million in total, according to Korean Ambassador to Cambodia Kim Han-soo.

“The construction of Booyoung Town will not only boost the local economic development and residential improvement, but also promote the mutual alliance between Korea and Cambodia,” the Booyoung chief said.

Following Korea’s economic development footsteps, Cambodia is now meeting an era of prosperity, he added.

“Cambodia’s market has only recently started to flourish and will grow further in the upcoming years with the legislation of residence law and other investment-related laws,” he said.

“We thus expect the current growth to continue for the next three or four decades, which means an ongoing business opportunity for Booyoung.”

By Bae Hyun-jung, Korea Herald correspondent
(tellme@heraldcorp.com)