Gwangju City, Gyeonggi Province (Mayor Bang Se-hwan) announced on the 14th that the Gyeongan 2 District Urban Development Project, which was at risk of being canceled due to project delays, will proceed normally with the selection of an alternative construction company.
The Gyeongan 2 District Urban Development Project involves constructing four residential-commercial apartment buildings of 36 to 39 floors on a 29,725㎡ site in Yeokdong 285-3, Gwangju City. The project includes 818 apartment units, 72 officetel rooms, and commercial spaces.
Additionally, as part of traffic improvement measures, a bridge connecting Ssangryeong-dong and Gyeongan-dong and the expansion of Yeokdong IC are planned. The total project cost is approximately 650 billion KRW, with completion targeted for 2029.
Since being designated as an urban development zone in December 2017, the project has been promoted through a public-private partnership between the NH Investment & Securities consortium and Gwangju Urban Management Corporation, aiming to achieve a balanced urban structure and sustainable city development in Gwangju. However, as the project period extended, issues such as rising construction costs and a downturn in the construction market caused difficulties.
Gwangju City judged that normalizing the project, even through some adjustments in public contributions, aligns with the public interest considering the negative impacts if the project were canceled, including risks of land auction processing by financial institutions, potential lawsuits related to repurchase rights, and public harm due to urban development delays.
The Emergency Response Headquarters and Advisory Committee, formed under the special directive of Mayor Bang Se-hwan, held multiple discussions to devise risk mitigation measures. As a result, they derived a reasonable solution that maintains public contributions related to the landmark residential-commercial building construction and traffic improvements at Yeokdong Intersection while achieving project normalization.
As a result of this proactive problem-solving effort, Hyosung Heavy Industries Co., Ltd. was selected as the alternative construction company, leading to the project's resumption.
With the recent approval of the revised housing construction project plan and completion of architectural structure review following the change of the construction company, the city plans to actively cooperate to ensure smooth sales and groundbreaking in May.
A Gwangju City official stated, “With the normalization of this project, we expect not only the revitalization of the local economy but also the smooth construction of the landmark residential-commercial apartment complex in Gwangju. We will continue to strive to provide better living conditions for our citizens.”
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