Osong Station Hyundai Local Housing Association Completes Land Balance Payment, Showing Unprecedented Progress for a Smooth Project Path

The Osong Station area urban development project in Cheongju, Chungbuk, scheduled to begin construction this month, has overcome a major hurdle with the payment of approximately 90 billion KRW from Seokjeong Urban Development on March 31.

In February last year, Seokjeong Urban Development Co., Ltd. and the Osong Station Area Urban Development Association signed an MOU and launched the Osong Station Hyundai Local Housing Association as a regional housing association project. Then in May, under the Hillstate brand, they completed 100% recruitment of association members in just three days, drawing significant attention.

Since then, the Osong Station Hyundai Local Housing Association has been pushing the project forward rapidly. In December last year, the urban development association’s land readjustment plan was approved, and in February this year, a formal land sale contract was signed with the Osong Station Hyundai Local Housing Association. On March 31, the remaining balance was fully paid within just two months, marking a decisive moment in securing project funds.

The industry has regarded this as an unusual case. Typically, the remaining balance is paid by association members individually through loans, but this time, Seokjeong Urban Development Co., Ltd. took the initiative to secure loans through its own credit guarantees and collateral to make the payment.

Initially, financial institutions and construction companies believed that due to the nature of regional housing association projects, it was impossible to obtain loans for land balance payments before the housing association establishment approval. However, Seokjeong Urban Development judged that prompt payment of the land cost was essential for project progress and fought hard in negotiations with financial institutions. As a result, they achieved the outcome of gathering 46 Saemaeul Geumgo branches to provide the loan.

Lee Chang-seop, CEO of Seokjeong Urban Development Co., Ltd., stated, “Based on Seokjeong Urban Development’s high capability and reliability in regional housing association projects, we were able to achieve close and efficient cooperation among partners,” adding, “Most related parties recommended proceeding with loans after urban development approval, but our goal was to carry out the Osong Station Area Urban Development Association project as planned. Securing the land funds was crucial for smooth project progress and served as the foundation for stable project execution, which is the hope of the association members. Therefore, we actively persuaded each financial institution.”

Thanks to these efforts, the industry’s evaluation of Seokjeong Urban Development’s project execution ability and external business performance is expected to rise significantly. With project funds secured, compensation for relocation and demolition obstacles will proceed smoothly, raising expectations for the success of both the Osong Station Area Urban Development Project (scheduled for completion by the end of 2023) and the Osong Station Hyundai Local Housing Association project.

Meanwhile, Seokjeong Urban Development Co., Ltd. is currently managing over ten sites nationwide, including regional housing association projects and general sales projects, achieving success at each site. In May, they plan to open a promotional center in Daejeon Doan New Town in partnership with GS Construction using the regional housing association method. This project is expected to be recorded as the first case where the entire land balance of 140 billion KRW was fully paid and recruitment of association members commenced.