Yongin City Directly Oversees Road and Park Construction Following Large-Scale Development Projects

Expansion of 'Mandatory Off-Zone Infrastructure' for Consignment Areas
"Measures to Prevent Delays in Opening and Quality Defects in Advance"

Yongin City in Gyeonggi Province will directly undertake the construction of 'off-site infrastructure' such as surrounding roads and parks related to large-scale private development projects from next year, instead of entrusting the project implementers. The aim is to fundamentally resolve issues of delayed fulfillment of obligations by developers and quality degradation.

A road around Gorim District in Cheoin-gu, built by Yongin City as a consignment from the project operator. The city plans to expand the scope of consigned projects starting next year to prevent delays in infrastructure installation by developers. Provided by Yongin City

On the 23rd, Yongin City announced that starting next year, it plans to directly undertake the construction of legally mandated 'off-site infrastructure' such as roads and parks as a condition for permits for large-scale development projects including apartments, logistics centers, and industrial complexes.

The city explained that this is because developers conducting various development projects such as small-scale industrial complexes or district unit plans on forest land or farmland often fail to responsibly construct off-site infrastructure after building apartments or industrial complexes, resulting in frequent problems such as delayed openings or poor quality.

Going forward, the city will sign consignment agreements with developers for overall off-site infrastructure during development project permitting and proceed with construction swiftly by utilizing private capital. To this end, the city plans to revise the 'Yongin City Operation Guidelines for Consigned Infrastructure Installation' in the first half of next year. Additionally, the city intends to actively use local resources such as equipment, materials, and manpower in related consigned construction projects to help revitalize the local construction industry.

Until now, the city has selectively conducted consigned projects for off-site infrastructure related to urban development projects, industrial complexes, and logistics complexes. As of the end of November 2022, the total off-site infrastructure for various development projects carried out by the city amounted to 86 cases worth 946 billion KRW, of which 22 projects worth 242 billion KRW are currently being undertaken by the city under consignment. The fees collected by the city through consignment amounted to 600 million KRW.

The city estimates that if the scope of consigned projects is expanded, the number of related projects will increase to 55 by 2027, and the consignment fees collected as non-tax revenue will reach 5.7 billion KRW. This year, the consignment fees for 22 projects amount to 600 million KRW.

Separately, the city plans to regularly inspect construction projects ordered by the city and large-scale private construction projects to check the participation rate of local companies and encourage the employment of local workers and the use of local equipment and materials by contractors or associations in accordance with the 'Yongin City Ordinance on Supporting the Revitalization of the Local Construction Industry.'

As of the end of last month, out of 376 civil engineering and electrical construction contracts awarded by the city through negotiated contracts, 324 contracts (86%) were with local companies. For major road projects ordered by the city, it was found that local equipment was used in 84% of the total.

A city official said, "Various problems occur in the opening of infrastructure during development projects, so the city intends to take an active role." He added, "To resolve these issues, the city will lead the rapid construction of infrastructure and strive to utilize local resources to help revitalize the local economy."