The Jeju Provincial Tourism Association is founding J-Trip, which it says will help local travel agencies compete with large Chinese companies in attracting Chinese tourists to the island. Controversy has erupted, though, because foreign firms and large duty-free companies from Korea are also shareholders. Mike Laidman explains.

[Slug]
Shilla, Lotte each invest \500m in J-Trip

Chinese and Taiwanese funds are reportedly being invested in J-Trip, a travel agency being set up by the Jeju Provincial Tourism Association.

Korea's large duty free firms also will work themselves in as partners. (신라) Shilla Duty Free and (롯데) Lotte Duty Free have each chosen to invest 500 million won in J-Trip.

This money accounts for 20 percent of the total funds the travel agency has received.


KCTV Jeju looked into the new enterprise’s investment portfolio.

The Tourism Association holds 30 percent, the duty free companies and foreign companies hold another 30 percent. 40 percent is the amount of J-Trip owned by 70 local travel agencies.

This lopsided ratio has caused concern that the association would not be able to make its voice heard when deciding on the direction of the business.


Some point out that large enterprises and foreign investment could end up leading J-Trip, instead of local travel agencies.

[Camera]
Kim Yong-min

Specialists say detailed plans are needed to ensure that more of the profits J-Trip earns find their way to local businesses.

INTERVIEW
Jwa Gwang-il / Citizens' Coalition for Economic Justice
The main aim in the creation of J-Trip is to help local travel agencies compete with Chinese travel agencies in attracting Chinese tourists. But having Chinese money and large Korean companies involved goes against this goal. These powerful companies could come to control J-Trip, and so plans are needed to make sure more profits are shared with local businesses.
<인터뷰 : 좌광일/제주경제실천시민연합 사무처장>
"중국계 여행사에 대항하기 위해 설립되는 토종 여행사에 중국 자본과 대기업이 참여한다는 것은 설립 취지에 역행하는 것뿐만 아니고//
**수퍼체인지**
그들의 입김에 의해 휘둘릴 수 있다는 우려가 있습니다.
토종업체들이 실제 이익을 낼 수 있는 방안을 마련해야 합니다."

[reporter]
Mike Laidman

With the official launch of J-Trip this month, the JPTA is now considering getting financing from Jeju islanders.

However, with foreign money and investments from large companies muddying the waters, the purpose of the new venture is starting to be questioned.

Mike Laidman, KCTV