Veteran National Representatives of Urban Development Unite! Urban DevelopmentㆍDK Asia Signs Strategic Financial Underwriting Agreement with Hana Bank

DK Urban Development and DK Asia, rewriting the history of private urban development companies, recently completed the establishment of the first national representative system in the urban development project sector in collaboration with South Korea's top companies in finance and legal fields. The industry is particularly focused on this achievement as it lays the foundation for the stable and swift advancement of the ‘Resort City Season 2 Wanggil Station Royal Park City Prugio,’ which will be officially launched this year.

On the 20th, DK Urban Development and DK Asia signed a strategic financial underwriting agreement with Hana Bank, one of South Korea's four major financial institutions and a leading representative of the country's finance sector, to successfully advance the ‘Resort City Season 2 Wanggil Station Royal Park City’ project. The project covers ▶a land area of 1,451,878㎡ (439,193 pyeong) ▶6 complexes with 13,000 households ▶and a total project cost of 8.5 trillion KRW, making it a flagship resort city in South Korea.

Through this agreement, Hana Bank will serve as the financial underwriter, arranger, and advisor for the project’s funding procurement (including B/L, project financing, interim payment loan agreements, hereinafter referred to as ‘the funding procurement’). Hana Bank will hold exclusive and sole rights regarding the funding procurement for the project.

Additionally, Hana Bank will utilize its professional knowledge and experience to facilitate smooth project progress by performing comprehensive financial underwriting, arranging, and advisory services related to the funding procurement for ‘Wanggil Station Royal Park City.’

Hana Bank CIB Group Vice President Park Ji-hwan and DK Urban Development, DK Asia Chairman Kim Jeong-mo (right) pose for a commemorative photo after signing a strategic financial lead agreement for the development project of "Resort City Season 2, Wanggil Station Royal Park City" on the 20th.

Notably, this agreement holds deeper significance as Hana Financial Group is scheduled to begin full-scale occupancy in the second half of 2024 at Hana Financial Town, a 246,671㎡ (approximately 74,000 pyeong) complex being developed near the project site in the Cheongna International Financial District.

The workforce at Cheongna Hana Financial Town, including affiliates, is expected to reach 17,000 to 18,000 residents and trainees, which is anticipated to significantly contribute to regional economic revitalization through economic stimulation and job creation.

Prior to this, on the 11th, DK Urban Development and DK Asia also signed a comprehensive business agreement with Kim & Chang Law Office, South Korea’s top law firm ranked first domestically and recognized as one of the world’s top 100 law firms for seven consecutive years.

Kim & Chang Law Office is South Korea’s largest law firm, known for its extensive knowledge and experience, introduction of advanced legal systems, and recognition as a top partner in the global market.

Under this agreement, Kim & Chang will provide legal advice and services related to permits, various contract signings, taxation, and all legal disputes concerning the ‘Resort City Season 2’ project.

Regarding the strategic financial agreement, Park Ji-hwan, Vice President of Hana Bank’s CIB Group, stated, “This agreement will explore practical cooperation methods between the two companies, establish a foundation for mutual win-win outcomes, and generate the best synergy. We will continue to expand mutual cooperation to become a model case of financial business collaboration that proactively responds to the financial market during large-scale urban development projects.”

DK Urban Development and DK Asia plan to lead the resolution of the metropolitan housing shortage by showcasing a perfect system that combines functionality through agreements with Daewoo Construction, South Korea’s number one in housing supply performance, and Samsung C&T Resort Division, ranked first in landscaping construction capability, ensuring stable and swift project advancement with large-scale supply.

Meanwhile, ‘Resort City Season 2 Wanggil Station Royal Park City Prugio’ consists of six complexes with a total of 13,000 households in the Wanggil Station area of Seo-gu, Incheon. With a project cost of 8.5 trillion KRW, it is a megaton-scale project and the largest single project in South Korea. The first complex is scheduled to be supplied sequentially starting in the first half of the year.

DK Urban Development and DK Asia have been collaborating with Hana Bank and Kim & Chang since 2019, before launching the 4,805 households of ‘Geomam Station Royal Park City Prugio’ supplied last year. Early funding procurement for large-scale projects enabled swift project execution and successful sales.

In particular, Hana Bank facilitated smooth project progress by providing lump-sum land payments within the 567,567㎡ (171,689 pyeong) project site. Demonstrating broad understanding and experience in urban development projects, Hana Bank was honored with the Grand Prize (Minister of Land, Infrastructure and Transport Award) at the 4th Korea Real Estate Finance Awards in late 2019 and was selected as the Best Real Estate Finance Company.

Industry experts evaluate that these results were possible because, despite the rarity of first-tier financial institutions providing project financing (PF) for private urban development projects, Hana Bank took the lead in funding procurement for representative domestic urban development projects such as Seongnam Daejang District and the 4,805 households in Han-deul District, Seo-gu, Incheon, where ‘Geomam Station Royal Park City Prugio’ is located.

Moreover, in November last year, Hana Bank completed project financing for the first sales complex of ‘Resort City Season 2 Wanggil Station Royal Park City Prugio,’ focusing on securing expertise and project stability, and has been recognized as a leader in real estate finance through active initiatives.

With support from Kim & Chang Law Office, all 222 encumbrances, including factories and religious facilities within the 567,567㎡ (171,689 pyeong) project site, were amicably compensated and fully vacated within just eight months, setting a model success case in the industry. Kim & Chang significantly contributed to the successful sales completion by ensuring swift project progress and stability.

Therefore, the ‘Resort City Season 2 Wanggil Station Royal Park City Prugio,’ which will be fully launched this year, is expected to achieve successful project advancement. The area is currently experiencing urban expansion and population shifts centered around industrial complexes, with approximately 6,072,000㎡ of general industrial complexes being developed in Incheon Geomdan, Gimpo Yangchon, and Hagun.

Following this urban population flow in Incheon, the transportation network is also extending from Geomam Station through Dokjeong Station toward the western Geomdan industrial complex and Wanggil Station, rather than the Geomdan New Town, making the 13,000 households of ‘Resort City Season 2 Wanggil Station Royal Park City Prugio’ a highly anticipated megaton-scale emerging residential area.

Additionally, in 2024, the first sales complex of Resort City Season 2 and Starfield Cheongna?a complex cultural facility approximately 70 times the size of a soccer field, which began construction in July last year?along with Hana Financial Town, where up to 18,000 employees including affiliates will work, will be simultaneously established, leading to significant population influx, explosive demand growth, and regional economic revitalization.

Furthermore, ‘Resort City Season 2 Wanggil Station Royal Park City Prugio’ boasts a premium transportation network that allows access within 10 minutes by car to Starfield Cheongna, Hana Financial Town, and Magok District (Magoknaru Station) in Gangseo, Seoul, enhancing the convenience of commuting for office workers and highlighting its proximity to workplaces.

Especially, Magok District, known as the ‘Seoul Silicon Valley,’ houses Magok LG Science Park, South Korea’s largest convergence research complex with about 22,000 LG Group affiliate employees. Approximately 150 companies including Lotte, S-Oil, Nexen, and Kolon are expected to complete relocation by 2022, which is anticipated to bring a large influx of high-quality talent and significant economic inducement effects.

Resort City Season 2 Wanggil Station Royal Park City Prugio Total 13,000 Households Overall Bird's-eye View

Kim Jung-mo, Chairman of DK Urban Development and DK Asia, stated, “Through the agreements with Hana Bank, South Korea’s representative in finance, and Kim & Chang Law Office, the country’s top legal firm, we can ensure swift project advancement and stability. Following the 4,805 households of ‘Geomam Station Royal Park City Prugio,’ we will contribute once again to the economic development of Incheon by presenting 13,000 households of the high-end Resort City Season 2 Wanggil Station Royal Park City Prugio. Starting in 2022, the ‘Resort City Season 3,’ covering 1,166,451㎡ (350,000 pyeong) with 8,542 households across four complexes, will be actively promoted, and we plan to sequentially supply large-scale, mid-to-small sized housing with added public value in the metropolitan area, expanding both quantitatively and qualitatively.”

He added, “Since private urban development projects proceed in line with local government planning, we will participate in government policies and focus on expanding private sector supply to contribute to the metropolitan real estate market and housing stability. We will also continue researching various housing supply methods.”