Private → Public-Private Joint → Public... GH and Pyeongtaek Urban Corporation Joint Implementation
1.7 Trillion Won Invested in 2.31 Million㎡... Compensation and Land Supply Targeted for 2027
Although the project was promoted by the private sector, the development project of the Hyeondeok District in Pyeongtaek City, Gyeonggi Province, which had been stalled for 16 years, will ultimately be converted to a public development method.
The Gyeonggi Free Economic Zone Authority announced on the 28th that the Hyeondeok District development project will be converted to a public development method jointly implemented by Gyeonggi Housing and Urban Corporation (GH) and Pyeongtaek Urban Corporation.
A panoramic view of the Hyeondeok District in Hyeondeok-myeon, Pyeongtaek-si, Gyeonggi-do. Although the project was initially led by the private sector, it has been drifting for 16 years and is now being promoted through a public development approach. [Photo by Gyeonggi-do]
The Hyeondeok District project involves developing 2,316,000㎡ in the Jangsu and Gwongwan-ri areas of Hyeondeok-myeon, Pyeongtaek City, into a complex district equipped with residential, industrial, and cultural facilities. It was designated as a Free Economic Zone in May 2008, and in January 2014, Korea China City Development was appointed as the project operator. However, in August 2018, just over four years later, the designation was canceled due to failure to meet conditions such as approval of the implementation plan.
Afterwards, the Gyeonggi Free Economic Zone Authority changed the approach to a public-private joint development and selected the Daegu Bank Consortium as the preferred private negotiator at the end of 2020. However, this too failed within two years as they did not fulfill obligations to commence appraisal and compensation negotiation procedures.
Since the end of 2022, the Gyeonggi Free Economic Zone Authority has formed a normalization consultative body and a dedicated working group with Gyeonggi Province, GH, Pyeongtaek City, and Pyeongtaek Urban Corporation to discuss the project method, ultimately deciding to switch to public development.
The Gyeonggi Free Economic Zone Authority expects that after procedures such as feasibility review of new investment projects, designation of the project operator, and changes to development and implementation plans, compensation and land supply will be possible starting in 2027. The total project cost is estimated at 1.7 trillion won.
Choi Won-yong, head of the Gyeonggi Free Economic Zone Authority, said, "Although the prolonged project delay caused significant inconvenience to residents and infringed on the property rights of landowners, public-led rapid and stable development has now become possible. We will do our best to revitalize the local economy through the normalization of the Hyeondeok District development."
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