Pohang City to Establish 'Urban Corporation' Surpassing the Limits of the Facility Management Corporation

"Local Government-Led Development Projects Return Development Gains to the Community"

[Asia Economy Yeongnam Reporting Headquarters Reporter Dongwook Park] Pohang City, Gyeongsangbuk-do announced on the 24th that it plans to convert and establish the existing 'Facility Management Corporation' into the 'Pohang Urban Corporation' (tentative name) under the policy of leading various urban development projects in the future and returning development profits to the local community.

Pohang City, which conducted a feasibility study on the related matters from March to May, reported the results of the study on the 23rd at the 1st regular meeting of the 270th Pohang City Council (Autonomous Administration Committee).

Pohang City previously attempted to establish an urban development corporation in 2005 and 2009 but failed to do so considering changes in future conditions. Subsequently, in December 2010, the current Pohang Facility Management Corporation was launched with a capital investment of 200 million KRW to increase citizen convenience and provide high-quality services through the operation of various public facilities managed and operated by the city.

Currently, the Pohang Facility Management Corporation operates 24 entrusted projects assigned by Pohang City, including sports facilities, transportation, and environmental management, with 195 employees organized into 1 office, 1 headquarters, and 6 teams. Regarding this, Pohang City explained that under current laws, profit-making businesses are not allowed, which limits the ability to promote various development projects.

Pohang City expects that converting and establishing the corporation into an urban corporation capable of conducting development projects will facilitate development projects, including those in areas with long capital recovery periods and potential conflicts of interest. It is said to have the advantage of acting as a mediator and returning the profits to the local community.

A Pohang City official stated, "While continuing the existing Facility Management Corporation's work, a specialized department responsible for development projects will be additionally established, and the existing organization and personnel of the Facility Management Corporation will be fully succeeded."

This content was produced with the assistance of AI translation services.