Korea Technology Begins 170 Billion Won Construction for Real Estate Development Project... Subcontract Agreement with Seongji Construction and Others

[Asia Economy Reporter Jang Hyowon] Korea Technology, a KOSDAQ-listed company (CEO Shin Yonggu), announced on the 18th that it will purchase land worth 14 billion KRW in the area of San 16-2, Songji-ri, Yonghyeon-myeon, Sacheon-si, Gyeongnam, for its first real estate development project, the Sacheon Songji District Apartment Construction Project.

(From the left) Kim Jeong-geun, head of Sacheon Songji Regional Housing Association, and Shin Yong-gu, CEO of Korea Technology, are taking a commemorative photo for the land sale contract. / Photo by Korea Technology

The Sacheon Songji District Apartment Construction Project, which Korea Technology is promoting through the land purchase, is a large-scale construction project with a total construction cost of approximately 170 billion KRW on a site of 29,760.00㎡ (9,002 pyeong).

The project is scheduled to be carried out as a joint contract between its affiliate Daewoo Shipbuilding & Marine Engineering Construction (70%) and Sungji Construction (30%).

Sungji Construction is expected to be the first beneficiary of winning the joint contract following its incorporation as an affiliate of Daewoo Shipbuilding & Marine Engineering Construction.

The company plans to actively continue real estate development projects in the future to maximize synergy with Daewoo Shipbuilding & Marine Engineering Construction, Sungji Construction, and others.

Shin Yonggu, CEO of Korea Technology, said, “Complex development projects include not only simple construction but also development and operation, boasting high profitability,” and added, “This will be a major growth driver enabling Korea Technology to spread its wings for takeoff.”

He continued, “This 170 billion KRW development project is significant as it is the first joint contract case with subsidiary Daewoo Shipbuilding & Marine Engineering Construction as well as recently incorporated affiliate Sungji Construction,” and said, “Sungji Construction, which became a joint destiny partner in August, will make a leap forward as a top-tier construction company by working together on large-scale projects in Sacheon, Gyeongnam, and other major projects in the future.”

The Sacheon Songji District Apartment Construction Project is located in the area of San 16-2, Songji-ri, Yonghyeon-myeon, Sacheon-si, Gyeongnam, and consists of six apartment buildings with 25 floors above ground and two basement levels, comprising 578 apartment units and 151 pyeong of neighborhood living facilities.

Near the site, the Gyeongnam Aviation National Industrial Complex, related to MRO (Maintenance, Repair, and Overhaul) which is gaining attention as a new industry, is being developed with a target completion in 2022. Upon completion, demand for the apartments is expected to increase further.

Meanwhile, Korea Technology recently succeeded in raising 17 billion KRW through the issuance of unsecured private convertible bonds (CB). Notably, 13 billion KRW of the subscription was made by the current largest shareholder, Korea Innovation, which is known to have invested to support Korea Technology’s entry into development projects.