JEJU, South Korea, May 14 (Yonhap) -- The Jeju provincial government said Monday it has decided to accept the Defense Ministry's plan to build a naval base on the southern resort island.

The Navy wants to set up the base by 2014. However, critics claim such a facility could serve as part of a U.S. missile defense system, which is vehemently opposed by North Korea and China, and may undermine the island's image as one of the most popular tourist destinations in the country.

"After comprehensively reviewing the government's offer on setting up a naval base, we consent to it," Jeju Governor Kim Tae-hwan said in a statement.

Kim said the decision reflects the opinion of the people residing on the island.

"In an opinion poll of 1,500 residents, 54.3 percent supported the plan, while 38.2 percent were against it," he said. Kim said his office selected Gangjeong village in southern Jeju as the most preferred site for it.

He expected the establishment of a naval base to help boost the local economy.

The Defense Ministry has promised huge economic and other rewards for residents, saying it will invest 70 billion won (US$74 million).

Opponents have claimed the envisioned base contradicts the image of Jeju as an island of peace that has hosted a variety of high-level meetings and international conferences, including unprecedented inter-Korean defense ministerial talks in 2000 and a meeting of the foreign ministers of South Korea and Japan last month.

Defense Minister Kim Jang-soo welcome the move, saying it is a wise decision.

Kim said that his ministry will respect the opinion of local residents for the site and try to construct the world's most beautiful, eco-friendly port in the area.

He also reaffirmed that his ministry has no plan to construct an Air Force base for fighter jets on the island.

Critics have argued that the ministry is seeking to station a fighter wing on Jeju Island in line with plan to set up a naval base there.