Daegu City Selects 'Korea Investment & Securities Consortium' as Preferred Negotiation Partner for Seodaegu Station Area Development

Proposal for 300 Billion KRW Project Passed Daegu-Gyeongbuk Institute Evaluation ... Construction Scheduled for 2025

[Asia Economy Yeongnam Reporting Headquarters Reporter Park Dong-wook] Daegu City announced on the 5th that it plans to select the Korea Investment & Securities consortium as the preferred negotiation partner for the 'Seodaegu Station Area Public-Private Joint Investment Zone Urban Development Project' within this year.

This decision follows the evaluation of the private proposal submitted by the Korea Investment & Securities consortium on the 14th of last month by the Daegu-Gyeongbuk Research Institute, which was commissioned by Daegu City to assess the project. The consortium scored above the required threshold (750 points out of 1000).

Daegu City explained that this project is off to a smooth start compared to other urban station area development projects in other cities, which took a long time to designate negotiation partners, as a project partner has been secured about a year after the first announcement of the 'Seodaegu Station Area Major Development Future Vision' in September last year.

In May, Daegu City held an investment attraction briefing for the 'Seodaegu Station Area Development Public-Private Joint Investment Zone Urban Development Project' covering 540,000㎡ (approximately 163,000 pyeong), including the area around Seodaegu Station and the site of the integrated underground sewage treatment plant. Subsequently, on October 14th, a private proposal was received from one consortium that included major domestic construction companies and developers.

The evaluation of the private proposal focused on whether the consortium met the minimum requirements set by Daegu City and whether it had sufficient capability as the primary negotiation partner to carry out the project. The minimum requirements included the construction of a complex transfer center and anchor facilities (site area of 35,000㎡, project cost of 3 trillion KRW).

Accordingly, Daegu City plans to complete the selection process for the primary negotiation partner by the end of the year, then proceed with administrative procedures for full project implementation starting in 2021 (including LIMAC feasibility study, central investment review, etc.), followed by a third-party proposal announcement, designation of the preferred negotiation partner, and signing of the project agreement in 2022.

In 2023, the city will promote detailed design, implementation plan approval, and compensation negotiations, aiming to commence station area development construction in 2025 and achieve early completion by 2027.

Mayor Kwon Young-jin expressed strong determination, stating, "Although some view the project conditions negatively, we will push forward with thorough preparation through the three principles of precision, intensity, and cooperation to ensure this project drives balanced development and revitalizes the local economy."

Meanwhile, the Seodaegu Station Area Public-Private Joint Investment Zone Urban Development Project is expected to generate employment for about 13,000 people, induce production effects of approximately 2.7 trillion KRW, and create added value effects of around 940 billion KRW.

Above all, Daegu City ambitiously envisions that by achieving balanced development between the eastern and western parts of Daegu, it will resolve the deepening imbalance, revitalize the economically lagging Seodaegu area, and establish a new growth hub for Daegu as a center for economy, industry, culture, and transportation logistics.

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