Bintan to have huge resort

Bintan to have huge resort

SEOUL (Reuter): South Korea's LG Group plans to develop a huge resort complex in Bintan jointly with Sinar Mas Group of Indonesia, the influential Chosun Ilbo said.

"About US$800 million is expected to be invested in the project by 2011," the daily quoted an LG official Sunday as saying.

LG Chairman Koo Bon Moo will sign a memorandum of understanding with the Indonesian partner in early February.

LG, South Korea's third largest conglomerate or chaebol, is expected to hold a 30 percent stake in the Indonesian project, which calls for construction of hotels, condominiums and golf courses.

The Chosun Ilbo said the LG Group's portion would be invested by LG Construction and LG International.

The largest stake of 40 percent would go to Sinar Mas and the remaining 30 percent will be held by Marubeni Group of Japan, it said.

LG Group has said it wants to focus on expanding overseas business activities including setting up financial service units overseas.

The daily said LG group would soon take a 51 percent stake in a Polish bank at the cost of about $35 million to $40 malign.