Gyeonggi Southern Region's Largest 'Yongin International Logistics 4.0' 530 Billion PF Secured

Syndicate Formation Led by Kyobo Securities
Investment by Persys and Others to Develop State-of-the-Art Logistics Complex
Surge in Surrounding Development Projects Including SK Hynix Semiconductor Cluster

[Asia Economy Reporter Lim Jeong-su] Project financing (PF) funding worth 530 billion KRW has been secured for the creation of ‘Yongin International Logistics 4.0,’ the largest state-of-the-art logistics complex development project in southern Gyeonggi Province.

According to the investment banking (IB) industry on the 12th, ‘Yongin Joongsim,’ the special purpose corporation for the Yongin International Logistics 4.0 development project, received a PF credit line of 530 billion KRW from a lending consortium organized by Kyobo Securities.

The loan was divided into senior debt of 374 billion KRW and subordinated debt of 156 billion KRW based on collateral and repayment priority. Yongin Joongsim has a 4-year drawdown period, with maturity set for August 2025.

The procured funds will be used to develop the largest logistics complex in southern Gyeonggi Province on approximately 975,000㎡ (about 295,000 pyeong) of land located at San 28-6, Gorim-dong, Cheoin-gu, Yongin-si, Gyeonggi-do. The site is known to be the second largest nationwide following the ‘Gyeongin Ara Waterway Incheon’ logistics complex in western Gyeonggi Province.

Yongin Joongsim, the special purpose corporation for the logistics complex, includes investors such as furniture company Persys, GS Construction, and Space G. Some of these companies are expected to lease and use the logistics complex after its completion.

Hanwha Construction is responsible for construction and is required to complete the logistics complex within 47 months. The area of Cheoin-gu, Yongin-si, where Yongin International Logistics 4.0 is located, is also actively developing new town projects such as the ‘SK Hynix Semiconductor Cluster,’ ‘Yongin Platform City,’ ‘Yongin Gojin District,’ and ‘Yongin Gorim Jindeok District.’

Additionally, it is considered a region where logistics demand is rapidly increasing alongside the development of new towns in southern Gyeonggi Province. There are also transportation benefits such as the Yeongdong Expressway, the second Gyeongbu Expressway section from Anseong to Guri (scheduled for 2022), and the Seoul Metropolitan Area 2nd Ring Expressway section from Icheon to Osan (Dongtan) (scheduled for 2022).

An IB industry official said, "Although the project experienced delays and changes in investors over several years for various reasons, it has recently gained momentum due to the expansion of surrounding development projects and PF funding," adding, "Large-scale PF funding for apartments and knowledge industry centers in the Yongin area is expected to increase."