Yeosu City Announces Private Sector Bidding for 'Yeocheon Station Surrounding Area Development Project'

Promoting through Public-Private Joint Development Method, Exploring Early Activation Measures

[Asia Economy Honam Reporting Headquarters Reporter Shim Kyung-taek] Yeosu City in Jeollanam-do has launched a public contest for private developers for the development project around Yeocheon Station, the gateway to the city, aiming to grow the area into a transportation and distribution hub of the South Coast.

According to the city, to revitalize the local economy and establish a complex transfer center, they plan to prioritize the development of 363,000㎡ around Yeocheon Station to promote early activation and lead successful development.

The development method will be a public-private joint development approach, where the private sector and administration establish a special purpose corporation. The city will handle development plan approvals and administrative support, while the private sector will be responsible for financing and the development project.

Eligible participants for the contest are private consortia including construction companies. The lead company must be a construction business ranked within the top 20 in construction capability evaluation or a corporation with over 500 billion KRW in equity capital, with a minimum equity stake of 20%.

The contest guidelines reflect measures to stabilize real estate prices by completing site preparation and building construction and sales within the project period, and to encourage creative proposals from private developers.

The evaluation will be conducted by a review committee composed of experts nationwide, assessing overall aspects of the development plan, business plan, and operation plan, with particular focus on regional commercial coexistence strategies and local economic revitalization plans.

The contest schedule includes a project briefing session on the 30th of this month, followed by submission of letters of intent from that day until July 5, submission of project applications on October 21, and selection of the preferred negotiation partner through evaluation and review.

After selecting the preferred negotiation partner, procedures such as feasibility review of the special purpose corporation, city council approval, corporation establishment, resident briefings, and development plan formulation will be carried out, with land compensation planned to begin in July 2024.

Detailed information related to the contest can be found on the Yeosu City website.

A city official stated, “We plan to develop KTX Yeocheon Station into a new growth space to prevent population outflow and promote population inflow,” adding, “We look forward to active participation from capable and sound companies.”

Meanwhile, the area around Yeocheon Station has already been included in Jeollanam-do’s regional development plan for hub growth after receiving approval from the Ministry of Land, Infrastructure and Transport in 2018, following the 2013 KTX station area basic concept and development feasibility study. This project is expected to enable early realization of higher-level plans reflected in Yeosu City’s 2030 and 2035 urban master plans.