Koramco Completes 'Songnim Pine&U,' Incheon’s First Trust-Based Redevelopment Project

[Asia Economy Reporter Minji Lee] Koramco Asset Trust announced on the 13th that it has completed the first trust-based maintenance project in Incheon, the ‘Songnim 5 District Urban Environment Maintenance Project’ (hereinafter referred to as the ‘Songnim 5 District Redevelopment Project’), and received usage plan approval from the Dong-gu Office of Incheon.

The Songnim 5 District Redevelopment Project is the first trust-based maintenance project initiated in Incheon, redeveloping the aging residential area around 29 Songnim-dong, Dong-gu, Incheon, into a residential-commercial complex apartment complex.

Koramco Asset Trust's first trust-type maintenance project in Incheon, 'Songnim 5 District Urban Environment Maintenance Project (Incheon Songnim Pine & You)' overview

Koramco Asset Trust was designated as the project agent for the Songnim 5 District Redevelopment Project by the Dong-gu Office of Incheon in February 2017, and in about 45 months successfully transformed the area into a mid-sized residential-commercial complex apartment complex called ‘Incheon Songnim Pine & U,’ consisting of three apartment buildings with 232 households from basement level 4 to ground level 22, and 27 commercial facilities.

The Songnim 5 District Redevelopment Project was initiated by local residents who established a union in 2008 and received project implementation approval and management disposition approval the following year. Although the project seemed to proceed smoothly with the selection of a construction company and submission of the construction start report, issues such as concerns about project feasibility and sales raised by some union members eventually caused the project to collapse.

After the project was halted for over seven years, Koramco Asset Trust was finally selected as the project agent following the revision of the Urban and Residential Environment Maintenance Act (hereinafter referred to as the ‘Urban Maintenance Act’), which allows real estate trust companies to carry out reconstruction and redevelopment projects on behalf of maintenance unions.

To normalize the project, Koramco Asset Trust restructured the financial framework by injecting its own funds and loans from the construction company Pine Construction, and proceeded with related permits and approvals. Subsequently, after swiftly advancing the construction procedures, the trust agency completed the groundbreaking, completion, and usage plan approval within just over three and a half years, and is preparing for the residents’ housewarming at the end of this month.

Lee Choong-sung, head of the trust division at Koramco Asset Trust, said, “The Songnim 5 District Redevelopment Project is a model case that added new possibilities through the trust method to a maintenance project that lacked feasibility and succeeded.” Meanwhile, Koramco Asset Trust plans to solidify its position as a leading company in trust-based maintenance projects by continuously winning orders for projects such as the country’s first trust-based maintenance project, the Anyang Hogye Apartment Reconstruction Project (Pyeongchon Daeseong United), Seoul Dobong 2 District Redevelopment, Asan Mojong 1 Redevelopment in Chungnam, Incheon Juan Woojin Apartment Reconstruction, and Incheon Songwol Apartment Reconstruction, while significantly expanding its maintenance project workforce.

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