Gyeonggi-do Recovers 1.25 Billion KRW in Overdue Rent from Foreign Investment Rental Industrial Complex 'Achievement'

[Asia Economy (Suwon) = Reporter Lee Young-gyu] Gyeonggi Province has succeeded in recovering a total of 1.25 billion KRW in rent from delinquent companies within foreign-invested rental industrial complexes in the province through proactive administration.

On the 21st, Gyeonggi Province announced that it recovered 1.252 billion KRW (from 4 companies), which accounts for 14.7% of the total delinquent rent of 8.5 billion KRW in foreign investment complexes in the province, last year and this year.

Considering that 65% of the delinquent rent, amounting to 5.57 billion KRW, is from companies that have gone bankrupt, liquidated, or closed, the actual recovery rate is an impressive 42.7% compared to the recoverable amount of 2.93 billion KRW.

To recover delinquent rent, the province induced corporate rehabilitation and business normalization through investment matching such as capital joint ventures and business transfer (a method that comprehensively transfers assets, liabilities, rights, obligations, and organization of a specific independent business sector) since last year, recovering 929 million KRW. Additionally, after conducting a survey this year and holding meetings with the relevant companies, it recovered an additional 323 million KRW through continuous recovery efforts.

In the case of Company D, located in the Chupal Industrial Complex in Pyeongtaek, when foreign shareholders withdrew their stakes causing the loss of qualification as a foreign investment complex tenant and the company entered corporate rehabilitation due to management crisis, the province discovered potential investors in similar industries wishing to purchase the existing factory and supported the business transfer of the existing factory. This negotiation, beneficial to both the province, the existing company, and the new company, efficiently utilized the foreign investment complex site and succeeded in recovering approximately 240 million KRW in unpaid rent, which could have been difficult to recover due to bad debts.

The province plans to continuously collect outstanding debts through provisional seizure, payment orders, and corporate asset investigations.

For companies whose bankruptcy and liquidation procedures have been completed by the court, the province cancels tenancy contracts and implements administrative measures such as guiding public auctions and restoring the site to its original condition, establishing and operating transparent and systematic management standards.

Furthermore, starting this month, to attract new high-quality companies, the province has strengthened the tenant review system and, for existing insolvent companies, established detailed operational guidelines for the first time nationwide, setting support standards prioritizing corporate rehabilitation through investment matching.

Lee Min-woo, Director of the Investment Promotion Division of the province, emphasized, "We will continue to recover delinquent rent through proactive administration to eliminate reverse discrimination against companies that faithfully pay, and create the most rational foreign investment complex system nationwide through a balanced approach combining principles and inclusiveness."

Meanwhile, in the province, 99 foreign-invested companies are located in 8 rental complexes spanning 1.91 million square meters in the Pyeongtaek, Hwaseong, and Paju areas. These foreign-invested companies have total sales of 8.619 trillion KRW, investments of 2.14 billion USD, and employ 9,425 people.

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