'Gimhae Science Park' 165 Billion PF...Major Shareholder Expects Development Profits

Expected Bird's-eye View of Gimhae Science Park General Industrial Complex

[Asia Economy Reporter Lim Jeong-su] EK Industry has raised 165 billion KRW in development funds to establish the Gimhae Science Park Industrial Complex in Gimhae, Gyeongnam. EK Industry is the major shareholder family company of eKorea Industry, a partner of LG Electronics, with CEO Jeong Tae-young and his two children holding 100% of the shares, thereby securing a significant portion of the development profits.

According to the investment banking (IB) industry on the 9th, EK Industry and others recently signed a credit facility agreement worth 165 billion KRW with a consortium of financial institutions. The syndication was divided into senior loans of 130 billion KRW, mezzanine loans of 15 billion KRW, and subordinated loans of 20 billion KRW based on collateral and repayment priority. NH Investment & Securities and others are reported to have participated in the lending consortium.

EK Industry will use the raised funds for the construction of the Gimhae Science Park general industrial complex. The Science Park project involves developing and selling approximately 849,675㎡ (about 257,026 pyeong) of land located at San 165-2, Myeongdong-ri, Hallim-myeon, Gimhae City, into industrial and logistics sites. HDC Hyundai Development Company is responsible for construction and has committed to complete the project by 2025.

EK Industry was established as a project company with a capital of 50 million KRW by CEO Jeong Tae-young, the major shareholder of eKorea Industry, and his children for the Science Park development project. CEO Jeong holds 10% of the common shares, while his two children, Jeong Min-gyu and Jeong Yu-kyung, each hold 45%. Development profits, excluding financial and construction costs, will be distributed according to shareholding ratios.

With the development funds secured, the sale of industrial complex lots is expected to accelerate. The industrial complex will accommodate manufacturing industries such as rubber and plastic products (C22), primary metals (C24), fabricated metal products (C25), electronic components, computer, video, audio, and communication equipment (C26), medical, precision, optical instruments, and watches (C27), electrical equipment (C28), other machinery and equipment (C29), automobile and trailer manufacturing (C30), as well as warehousing and transportation-related services (H52).

Meanwhile, eKorea Industry is an electronic product injection and molding company with annual sales around 100 billion KRW and is one of LG Electronics’ key partners. Its affiliates include eKorea Industry, eKorea Industry, EK Industry Science, Eco General Construction, and the eKorea-Guro Dajeon India branch.