Kamco and Boryeong City Sign Business Agreement to Promote Life SOC Complex Project

[Asia Economy Reporter Kwon Haeyoung] Korea Asset Management Corporation (KAMCO) signed a written "Business Agreement for the Promotion of Boryeong City Living Social Overhead Capital (SOC) Complex Project" with Boryeong City on the 1st.

This business agreement was prepared to seek cooperation plans and establish a cooperative system between the two organizations for the Living SOC complex project. It plans to promote a entrusted development project of shared property for Boryeong City's ▲Wondosim Complex Business Town ▲Jukjeong-dong Complex Public Parking Lot ▲Boryeong Mud Theme Park ▲Tojeong Bigyeol Experience Center, among others.

The total scale of this Boryeong City Living SOC complex project is 98.8 billion KRW. The local government entrusts the management and development of shared property to KAMCO, and KAMCO is responsible for financing, development, and operation, recovering development costs during the entrusted period through the entrusted development method of shared property.

Entrusted development of shared property is a structure in which public institutions such as KAMCO, which have real estate management and development know-how, finance the initial project costs to increase utilization and value of underutilized or unused local government-owned shared property, and after completion, the local government repays the development costs long-term through rental income and operating income of neighborhood facilities.

To promote the project effectively, the two organizations agreed to mutually cooperate in ▲providing data and exchanging information ▲consulting on development projects ▲reviewing project feasibility including public interest, aiming to enhance resident benefits and revitalize the local economy through early project commencement.

Namgung Young, Head of KAMCO Public Development Headquarters, said, "We hope that this business agreement will contribute to revitalizing the local economy through entrusted development of shared property in the Boryeong City Living SOC complex project," and added, "KAMCO will continue to actively support the government's expansion of Living SOC investment based on accumulated capabilities such as public asset management and development know-how."

Meanwhile, since 2005, KAMCO has successfully completed 33 entrusted development projects of national and public shared property. Currently, it is conducting 29 development projects worth 1.1472 trillion KRW. Recently, in line with the government's policy to expand construction investment, it is supporting local governments with weak financial capacity in Living SOC complex projects by applying the entrusted development system of shared property.