A special purpose company(SPC) made up of Korean and Chinese firms will start work in forming a China-friendly city within the free economic zone in Pyeongtaek, Gyeonggi Province.

The SPC announced Friday that 50 billion won in capital needed for the initiative has been secured and preparation will begin in earnest from December.

The city will be constructed under the concept of a 'hotel inside a duty-free store.' It will feature a five-star hotel, residential lodging, a K-pop concert hall, a major shopping center and a top international school among other facilities.

The China-friendly city is located about ten kilometers away from major factories owned by Korean conglomerates and Camp Humphreys, which accommodates U.S. forces stationed in Korea.

Once completed, the city will be home to roughly 30-thousand residents and is expected to create some 40-thousand new jobs.