Gyeonggi Province will begin discussions with joint project operators, including Suwon City, Yongin City, and Gyeonggi Housing and Urban Development Corporation (GH), to establish fair and reasonable standards for the execution of development profits generated from the Gwanggyo New Town land development project, which was completed in December of last year.
Construction of Gwanggyo New Town began in 2005 and was completed on December 31, 2024.
Located in Iui-dong, Woncheon-dong, and Ha-dong of Yeongtong-gu, Suwon City, as well as Sanghyeon-dong in Suji-gu and Yeongdeok-dong in Giheung-gu, Yongin City, Gwanggyo New Town is a major new city in the southern metropolitan area, covering a total area of 10,787,000 square meters and supplying 31,500 households. According to the agreement, development profits generated during the development process must be reinvested for the benefit of residents and regional development within Gwanggyo New Town.
There have been differences of opinion among project operators regarding the selection of target projects, the amount of funds to be used, and the prioritization of projects utilizing the development profits.
Now that the project has been completed, Suwon City and Yongin City are requesting that the remaining development profits be allocated to public projects within the district. In contrast, Gyeonggi Province is considering establishing transparent and reasonable execution standards under its own leadership for reinvestment within the Gwanggyo district, rather than simply distributing the development profits.
Accordingly, Gyeonggi Province is continuously consulting with Suwon City, Yongin City, and Gyeonggi Housing and Urban Development Corporation to establish rational execution standards.
In particular, to strengthen fairness, the province plans to discuss various measures, including not only the current method of decision-making through consultation among project operators but also involving external experts in budgeting and accounting.
Gyeonggi Province intends to focus the use of Gwanggyo development profits on areas that directly impact residents, such as upgrading community facilities, establishing cultural and sports infrastructure, and implementing transportation and environmental improvement projects. The province aims to review directions that will enhance Gwanggyo New Town's self-sufficiency and contribute to its sustainable development.
An official from Gyeonggi Province stated, "Because the Gwanggyo development profits are a valuable asset that must be reinvested within the district, they should be used in areas that improve residents' quality of life and drive regional development. Gyeonggi Province will strive to ensure that residents' opinions are reflected in a balanced manner through consultation and coordination with project operators, and that rational and transparent execution standards are established."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
