Gwangju Jungang Park District 1 Apartment Construction Company Selected as 'Lotte Construction'

Kim Jong-hyo, Deputy Mayor for Administration, "If it is judged that normal progress is difficult, a major decision will be made"

Kim Jong-hyo, Deputy Mayor of Gwangju Metropolitan City, is announcing Gwangju Metropolitan City's position on the Central Park District 1 Private Park Special Project at the city hall briefing room on the afternoon of the 12th. Photo by Gwangju Metropolitan City

[Asia Economy Honam Reporting Headquarters Reporter Park Seon-gang] Lotte Construction has been selected as the contractor for the Gwangju Metropolitan City Central Park District 1 Private Park Special Project.

On the 12th, Bitgoeul Central Park Development, a special purpose company (SPC) and the project implementer, selected Lotte Construction as the contractor through a shareholders' meeting held that day.

Lotte Construction agreed to introduce the "Lotte Castle Signature" brand, which was previously used only in apartments in Gangnam, Seoul, to increase marketability, and prioritized raising 650 billion KRW out of the 1.2 trillion KRW project financing (PF) amount through a post-sale method.

Previously, Bitgoeul Central Park Development had obtained a loan commitment letter promising 650 billion KRW from Korea Investment & Securities and submitted it to Gwangju City.

Meanwhile, Kim Jong-hyo, Deputy Mayor of Gwangju City, stated at 2 p.m. on the same day in the "Gwangju Metropolitan City Position on Central Park District 1 Private Park Special Project" that "if it is judged that the Central Park District 1 project cannot proceed normally due to the fault of the project operator, a significant decision must be made."

He explained, "In the case of Central Park District 1, which is being promoted as a private park special project, Bitgoeul Central Park Development Co., Ltd., the private park promoter, is not only failing to submit the project performance bond and agreement performance bond as required, but internal shareholders are divided into two sides due to interests such as construction rights, causing serious internal conflicts and publicly asserting their positions, showing inappropriate behavior as the project implementer, which is causing serious difficulties in project progress."

He continued, "We cannot allow this project to be delayed due to internal conflicts within Bitgoeul Central Park Development Co., Ltd. There is no value more important than the interests of the citizens. If Bitgoeul Central Park Development Co., Ltd. does not submit the legally required project performance bond and agreement performance bond within the specified period, or if it is judged that the Central Park District 1 project cannot proceed normally due to internal conflicts, we clearly state that we will have no choice but to make significant decisions according to relevant laws, the request for proposal, and the project agreement."