Restarting the 'Pocheon Gomori Industrial Complex' Development Project Facing Failure Risk

Agreement Signed for Public-Private Joint Project... Special Purpose Corporation to Be Established
Approximately KRW 97.6 Billion Investment with Completion Target in 2023

Pocheon Gomori Industrial Complex Development Fully Underway [Provided by Gyeonggi Province]

[Asia Economy Reporter La Young-cheol] The 'Gomori Industrial Complex' development project in Pocheon-si, Gyeonggi Province, which was on the verge of collapse, has restarted.

Pocheon City announced on the 19th, "Recently, through consultations with a corporate consortium led by Hoban Industries Co., Ltd. (Kyobo Securities Co., Ltd., Samwon Industrial Development Co., Ltd., DCT Development Co., Ltd.), a written agreement was signed to promote a public-private joint project, opening the way for the project's resumption."

Originally, this project was to be promoted by Hanssem Development Co., Ltd. under the name 'Design Cluster Development Project' in Gomori, but last year, due to COVID-19 and other reasons, they sent a notice that further progress was difficult, causing the project to halt.

Subsequently, Gyeonggi Province and Pocheon City judged the industrial complex to be a crucial catalyst for economic revitalization and job creation in northern Gyeonggi and have been seeking to normalize the project by finding new operators.

Under this agreement, Pocheon City and the Hoban-Kyobo consortium will invest 20% and 80%, respectively, to establish a public-private joint Special Purpose Company (SPC) to implement the Gomori Industrial Complex development project.

Pocheon City will handle all administrative tasks related to permits and infrastructure support for project promotion, while the Hoban-Kyobo consortium has promised to invest approximately 97.6 billion KRW in total project costs and ensure responsible completion of the industrial complex.

The agreement parties plan to begin administrative procedures to establish the SPC early next year, aiming to complete related permits and procedures within this year. If the project proceeds smoothly, completion is expected around the end of 2023.

The agreement parties plan to transform Gomori from an industrial complex centered on the furniture industry into a complex industrial complex including e-commerce and food industries.

Through this, it is expected to generate a production inducement effect of 795.4 billion KRW, a value-added inducement effect of 286.5 billion KRW, and create about 5,900 jobs.

The Gomori area in Soheul-eup is located near Soheul IC on the Sejong-Pocheon Expressway, and with the scheduled opening of the Gomori IC on the Metropolitan Area 2nd Ring Expressway in 2023, connectivity to the entire metropolitan area will improve, enhancing location conditions.

Ryu Gwang-yeol, Director of the Provincial Economy Office, said, "We plan to provide active administrative support for the prompt normalization of the project," adding, "We hope this will greatly help expand the lacking industrial infrastructure and balanced development in northern Gyeonggi."