[Hello Thailand] Thailand turns to Korea for key projects, eyeing mutual growth

$100 billion Land Bridge project aims to attract Korean firms across finance, shipbuilding, port operations and civil engineering
As Thailand advances a sweeping plan to transform Asia's logistics landscape, it is inviting South Korean firms to participate in its 1 trillion baht ($30 billion) infrastructure initiative: the Land Bridge.
The massive plan, spearheaded by the Thai government, aims to connect Chumphon on the Gulf of Thailand with Ranong on the Andaman coast via a 90-kilometer overland corridor of highways, railways and two deep-sea ports. Designed to bypass the congested Malacca Strait, the project is expected to reduce transport times by up to four days and lower logistics costs by approximately 15 percent.
'More than 85,000 ships pass through the Strait of Malacca annually, and that number is rising by 2 percent each year, raising the risk of congestion, accidents and delays,' said Suksit Srichomkwan, deputy secretary-general to the Thai prime minister, in an interview with The Korea Herald on the sidelines of the Ignite Thailand-Korea Business Forum on April 22.
With projections showing the strait nearing full capacity by 2030, Srichomkwan said that the Land Bridge is not merely an alternative but a necessity. 'The Landbridge complements -- not competes with -- Singapore and Malacca by diverting congestion and supporting feeder systems and smaller vessels."
Beyond easing maritime traffic, the project could serve as a key driver of Thailand's long-term economic growth.
'The project could attract up to $100 billion in investment and boost Thailand's GDP by 1 to 2 percent, depending on the type of partnerships formed,' Srichomkwan said.
In Thailand, the project could spur development in the southern provinces by expanding export routes for agricultural and seafood products, while also enhancing trade flows through the Eastern Economic Corridor -- an economic zone spanning three eastern provinces.
Cross-border cooperation is central to Thailand's bid to attract public and private investment, with positive talks ongoing with both China and Malaysia. One example is the project's reliance on goods from China to support its initial operations.
In this regard, Srichomkwan expressed hopes of evolving the Korea–Thailand relationship, traditionally strong in the travel sector, into deeper business and investment ties.
He alluded to Korean business models with the potential to scale in Thailand: 'We favor investors who bring the entire supply chain, not just final assembly."
Srichomkwan highlighted Korea's strengths in shipbuilding, logistics, port operations and civil engineering, which make its companies particularly well-suited to seize the opportunity.
"Compared to past issues with Chinese contractors, Thailand has more trust in Korean companies for reliable infrastructure development," he said. 'Thailand is also very open to Korean financial institutions supporting Korean-led projects."
He noted that Korean financial institutions and property developers could benefit from ground-floor investment opportunities, given that much of the project area is still undeveloped.
One example already underway: 'SK Bioscience is interested in producing influenza vaccines in Thailand,' said Srichomkwan, highlighting biohealth and future industries as priority sectors for bilateral cooperation.
Future opportunities are expected to grow as the area will be designated a Special Economic Zone offering streamlined regulations and targeted incentives for key industries.
'Tax incentives of up to eight years, subsidies and co-investment options will be available,' he said. 'We'll customize these benefits based on the strategic fit and demand of each investor.'
The project is also expected to be insulated from political shifts as it progresses. 'This is a long-term endeavor,' Srichomkwan noted. 'A law has been drafted specifically for the zone, making government support legally binding, regardless of which party holds power."
To strengthen economic ties, Thailand is planning a regional economic forum in Bangkok -- possibly this December -- with hopes to invite the Korean prime minister. 'There's also hope for deeper EPA negotiations and financial partnership models involving Korea and other countries in the region,' he said.

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