Pyeongtaek Hyeondeok District to Be Developed Through 'Public-Private Joint Method'

Location map of Pyeongtaek Poseung and Hyeondeok districts where the Yellow Sea Free Economic Zone Authority is promoting corporate investment attraction

[Asia Economy (Pyeongtaek) = Reporter Lee Young-gyu] Gyeonggi Province has decided to promote the development project of the Hyeondeok District in the Yellow Sea Free Economic Zone through a 'public-private joint development' method and is launching a public offering for private developers.

The public-private joint development method involves the Gyeonggi Housing and Urban Corporation (30% + 1 share) and Pyeongtaek Urban Corporation (20%) participating as public institutions, sharing equity with private developers (50% - 1 share) to undertake the Hyeondeok District development project.

The province plans to apply the 'Development Profit Return to Residents System,' a campaign promise made by Governor Lee Jae-myung of Gyeonggi Province, to the Hyeondeok District, returning the development profits generated after the project to local residents through infrastructure expansion and other means.

Interested participants must submit a letter of intent to participate in the project to the Gyeonggi Province Yellow Sea Free Economic Zone Authority by the 16th of next month and submit their project plans by November 27.

Eligibility includes financial investors (FI), construction investors (CI), and strategic investors (SI) who meet the qualifications stipulated in the Special Act on the Designation and Operation of Free Economic Zones. When forming a consortium with construction companies, it must include a company ranked within the top 50 in construction capability evaluation.

The province plans to select a preferred negotiation partner through this public offering in December and designate the alternative developer for the Hyeondeok District development project next year to proceed with the project normally.

Detailed information related to the public offering can be found in the public offering guidelines posted on the Gyeonggi Province Yellow Sea Free Economic Zone Authority website (yesfez.gg.go.kr).

The Hyeondeok District was designated and promoted in August 2012 when the Ministry of Knowledge Economy approved the development plan change for the Yellow Sea Free Economic Zone, designating approximately 2,316,000 square meters in the Hyeondeok-myeon area of Pyeongtaek City as the Hyeondeok District.

However, after setbacks such as the previous developer abandoning the project and changing the plan to a resort residential complex development, a large-scale development plan was approved in 2016 on the condition of investing 50 billion KRW of self-capital and conducting compensation within 90 days, but the project was not properly advanced.

In response, the province canceled the designation of the development project implementer (Daehanminguk Junggukseong Development) in August 2018 due to failure to meet the conditions for approval of the implementation plan.

Daehanminguk Junggukseong Development filed a lawsuit against the Yellow Sea Free Economic Zone Authority to cancel the cancellation of the designation as the Hyeondeok District development project implementer, but both the first and second instance courts dismissed the case.

Currently, Daehanminguk Junggukseong Development has submitted a statement of reasons for appeal, and the Supreme Court appeal trial is underway. The province is conducting a public offering for private developers to resolve residents' inconveniences caused by project delays as soon as possible and plans to designate an alternative developer after the administrative lawsuit is concluded.

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