'NSJ Holdings', renamed from 'Cheonhwa Dongin No.4'
Letter of intent submitted for participation in the project... Hwacheon Daeyu affiliates involved
It has been confirmed that parties related to Cheonhwa Dongin No.4, an affiliate of Hwacheon Daeyu involved in the Daejang-dong development project in Seongnam, Gyeonggi Province, also attempted to participate in the 1 trillion won-scale Anyang City Bakdal Smart Valley project. The Bakdal Smart Valley project is also a key pledge of Gyeonggi Province Governor Lee Jae-myung.
According to the real estate industry and Gyeonggi Province on the 28th, the Anyang Bakdal Smart Valley project is included in Governor Lee’s major regional pledges. In the ‘7th Term Election Pledge Book’ and ‘7th Term Pledge Implementation Plan’ provided by Gyeonggi Province, this project is included as one of the 16 strategies under the 5 major goals of provincial administration. The 5 major goals and 16 strategies consist of 182 policy tasks and 363 implementation tasks, with the Bakdal Technovalley project positioned as the 155th implementation task.
This project is a plan to create a convergence technovalley equipped with advanced industry, residential, and cultural facilities on a 3.1 million square meter site including the 50th Ammunition Battalion’s ammunition depot in Bakdal-dong, Manan-gu, Anyang City. The required budget, including the demolition of the 50th Ammunition Battalion’s ammunition depot, is known to reach about 1.1 trillion won. Gyeonggi Province has provided active administrative support throughout this process. To facilitate smooth project progress, a task force (TF) was formed in May 2020, with the first TF meeting held on June 5, an on-site briefing on June 9, and the second TF on-site meeting on July 3.
Overview of the Anyang Bakdal Technovalley Development Support Project in Lee Jae-myung Gyeonggi Province Governor's Pledge Implementation Plan Cheonhwa Dongin affiliates showed active interest in this project as well. According to the ‘Seoan Yang Eco-friendly Convergence Smart Valley Creation Project - Status of Submission of Letters of Intent for Participation and Announcement of Data Inspection Plans’ released by Anyang Urban Corporation, NSJ Holdings submitted a letter of intent and was the first to inspect the data on the 25th of last month.
NSJ Holdings is the renamed entity of ‘Cheonhwa Dongin No.4.’ Lawyer Nam Wook, the owner of Cheonhwa Dongin No.4, was registered as an inside director on August 10, 2020. On internet corporate information sites, Kim Seok-bae, a family member of Kim Man-bae, the major shareholder of Hwacheon Daeyu, is recorded as a director. Lee Seong-moon, the representative of Hwacheon Daeyu, is listed as the CEO.
Lawyer Nam is considered a key figure in the Daejang-dong development. His name appears from when the Korea Land and Housing Corporation (LH) was promoting the public development of Daejang-dong in 2005.
He participated as an advisor to ‘C7,’ a real estate development company established in 2006. This company secured more than one-third of the Daejang-dong land in a short period. After Daejang-dong shifted to a public-private joint development in 2013, he was named as the private developer and owner of Cheonhwa Dongin No.4. The dividends earned from the Daejang-dong development are estimated to reach 100.7 billion won.
Nam’s wife, Jeong Mo, has been confirmed to be registered as an executive at the Wirye New Town development company. Similar to the Daejang-dong development, Wirye New Town was structured with a special purpose company (SPC) and an asset management company (AMC) managing the SPC’s assets, leading the overall development project. This background raises suspicions that Hwacheon Daeyu and Cheonhwa Dongin affiliates may have planned a similar project in Anyang.
Questions have also arisen due to the cancellation of the public offering for the Bakdal Smart Valley project under unclear circumstances. On the 16th, Anyang Urban Corporation announced on its website that it was “canceling the public offering for private developers.” The corporation stated that the cancellation was to “enhance public interest, minimize gaps caused by procedural delays, and coordinate with related public institutions.” Coincidentally, this occurred as the Daejang-dong preferential treatment controversy was intensifying. Anyang City stated that it plans to relax the criteria to allow more developers to participate and will reannounce the public offering soon.
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