Gwangyang Economic Zone Authority Officially Advances Haeryong Industrial Complex Phase 2-2 Development

Expectations for Revitalizing Corporate Attraction through Securing Industrial Complex Sites

The Gwangyang Bay Area Free Economic Zone Authority (Commissioner Song Sang-rak, hereinafter Gwangyang Economic Authority) announced on the 22nd that it has signed an implementation agreement with the DL Construction Co., Ltd. consortium to promote the ‘Haeryong General Industrial Complex (Phase 2-2) Development Project.’

Originally, the Haeryong Industrial Complex development was somewhat delayed due to the project abandonment by the initial project operator, Daewoo Construction Co., Ltd. (April 2022), and after the public recruitment and selection of a priority project operator (August 2022), the sharp rise in interest rates and tightening of the bond market made it difficult to secure funds through PF loans. However, through this agreement, the project, with a total budget of 147 billion KRW on a site of 608,224㎡ (180,000 pyeong), is expected to be actively promoted.

[Photo by Gwangyang Economic Promotion Agency]

Haeryong Industrial Complex Co., Ltd., which will carry out the Haeryong Industrial Complex (Phase 2-2) project, is a special purpose corporation to be established by the DL Construction consortium selected as the preferred negotiator, consisting of DL Construction, Korea Construction, Gwangrim Togeon, and Cape Investment & Securities.

Once the project implementation conditions, such as the project performance bond, are met, the project operator designation, development plan changes, establishment of the implementation plan, and land compensation will be completed by April, with construction scheduled to begin in January 2024.

Song Sang-rak, Commissioner of the Gwangyang Economic Authority, said, “We will make every effort to secure the industrial complex site to expand the production scale of cathode materials, attract new precursor factories, link with local research institutes, and foster an ecosystem and promote corporate attraction to establish a secondary battery production base, which is a core strategic project of our authority.”

Asia Economy Honam Reporting Headquarters, Reporter Heo Seon-sik hss79@asiae.co.kr