[EXPO BID D-100] Busan expo bid requires big bills but will reap rewards

Hosting a mega-event comes with hefty bills. But Busan is confident that it can make ends meet with its bid to bring in the World Expo in 2030.

A computer-generated image of North Port in Busan, the proposed venue for the World Expo 2030, after the completion of its regeneration program [BUSAN METROPOLITAN CITY]

Hosting a mega-event comes with hefty bills. But Busan is confident that it can make ends meet with its bid to bring in the World Expo in 2030 — by recreating itself from a city of waning economic significance to one bustling with an influx of young people and tourists.

And that means nothing will go to waste in the one-off extravagance specific to the six-month event; rather, the project will reshape the city — and possibly the whole country — from its core, hopefully into a more sustainable one, Busan suggests in its ambitious vision for the World Expo.

The southeastern port city’s plan, if realized, could forever change Korea's economic geography while putting the country on the global map.

New opportunities

"We are trying to host the expo not only for the event operation, which holds great significance in itself but also because it is crucial to proceed with what Korea needs before and after the event," Busan Mayor Park Heong-joon told the Korea JoongAng Daily during an interview on Wednesday.

The Seoul Olympics in 1988, for example, "contributed immensely in refurbishing the city and raising Korea's standing in the world to the ranks of developed countries," explained Park.

The mayor believes that the World Expo can be a catalyst for a grand transformation for not only Busan but also for the country as a whole.

"Our emphasis has been on the necessity to secure another growth pillar for Korea, for the country to avoid relying solely on the greater Seoul area as a single pillar," Park said. The plan is to turn Busan into "a hub city," the second largest in the country following the greater Seoul area, by establishing infrastructure for the World Expo, refurbishing the urban area and enhancing its brand power .

Since 1851 when the very first World Expo was held in London, the event has provided the host cities with new opportunities for reinvigoration and economic expansion. The upcoming 2025 Osaka Expo is expected to bring in 2.6 trillion yen ($17.8 billion) in the region, according to the Japan Research Institute.

Osaka had previously hosted the World Expo back in 1970, which garnered 64 million visitors — the second-highest figure after 2010 Shanghai Expo's 73 million — and generated economic value worth some 2 trillion yen.

Additionally, the Shanghai expo “was planned in conjunction with the development project for the Huangpu River coast, and provided residents with a variety of cultural facilities, natural greenery, transportation infrastructure and more, which improved the quality of life significantly,” according to Park Ji-young, a senior researcher at the Center for Free Enterprise.

Park also mentioned Milan, Italy, which hosted the World Expo in 2015, saying “The expo site, which was about 15 kilometers [9.3 miles] from the city center, was transformed from decrepit factory sites and farmland into an industrial complex for corporations and research institutes.”

Busan hopes to be the next success story with new public transportation systems and facilities.

Major infrastructure projects are currently underway in Busan, including the construction of Gadeok-do International Airport, which will begin next year and be completed by December 2029. Busan’s North Port, the proposed venue for the expo, is also undergoing refurbishment to include a new opera house, public park and marine sports facilities.

The airport and the event venue will also be connected by an "urban loop," as Mayor Park calls it, Korea's first hydrogen-powered railway. With the express railway, formally named BuTX, it will take 15 minutes to get to North Port from the airport and 26 minutes to Osiria station in Gijang County.

Big bills, bigger paychecks

Should Busan win the bid against Saudi Arabia’s Riyadh and Italy’s Rome at the upcoming general assembly of the Bureau International des Expositions (BIE) slated for November, the city is expected to spend 6.5 trillion won ($4.9 billion) through 2030.

In return, hosting the World Expo is estimated to generate over 61 trillion won, create 500,000 new jobs and attract nearly 35 million visitors, according to the Korea Development Institute’s report.

That includes profits that would be directly generated from construction projects and the expo operations in the region, as well as indirect economic benefits that will come with the events, such as the inflow of tourists through an upcoming passenger airport, increased employment, new public infrastructure and facilities and the subsequent increase in consumer spending.

“The World Expo will be worth more than just 61 trillion won, I think, as it will create an opportunity to establish another pillar for Korea’s economy in the southern part of the country encompassing Busan, Ulsan and the surrounding regions, along with Seoul,” 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.

The 61-trillion-won figure, which may seem too big to grasp, breaks down into 5.3 trillion won for the preparation period — from 2027 to 2030 — during which new infrastructure construction and refurbishment projects in not only Busan but also surrounding regions are expected to generate 18,000 new jobs, and 56.5 trillion won during the expo itself.

Of the expected 56.5-trillion-won revenue, economic value derived from the visitors accounts for about 97 percent with 54.9 trillion won, both directly and indirectly.

The estimated profits from the World Expo far outrun that of the previous Winter Olympics — which Pyeongchang hosted in 2018 — by twofold and nearly three times the 2002 Seoul World Cup’s 11.5 trillion won.

While there may be skepticism about the long-term profitability of hosting the World Expo, with global mega-events such as the Olympics notorious for their high costs, Busan hopes that the expo will serve as an accelerator for its redevelopment program to reinvigorate the region’s economy.

“For example, in the case of Pyeongchang, the Olympics facility itself may not mean so much — but the express railway established for the Olympics and other related infrastructure systems further fueled the region’s economic development,” Kim of Pusan National University said.

Putting Korea on the world map

Another perk from the World Expo and the journey toward hosting the event is Korea's increased profile on the global stage.

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

SK Inc. Chairman Chey Tae-won, who also co-chairs the World Expo 2030 Busan Bid Committee, said that Korea’s ongoing effort to rally support from the BIE countries “means so much more than what can be calculated in quantitative money terms.”

“What is most important is the global relationship,” Chey said during a foreign press conference held in central Seoul in July, saying that forming new ties with smaller economies and “looking for what they need” will eventually provide a new growth engine for Korea, a country heavily dependent on exports.

“Securing new markets through expo endeavors, I believe, will bring in economic benefits worth more than 61 trillion won in the future.”

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