‘98% Sold Mokpo Daeyang Industrial Complex’ Became a Savior Industrial Complex from Debt Crisis

Leading the Local Economy through Corporate Residency and Job Creation

[Asia Economy Honam Reporting Headquarters Reporter Jeong Seunghyun] Despite concerns that Mokpo Daeyang Industrial Complex would become a financial burden for Mokpo City in Jeonnam, it is reborn as a leading industrial complex driving the local economy.

According to the city on the 5th, the total cost of the Daeyang Industrial Complex development project is 282.7 billion KRW, and Mokpo Daeyang Industrial Complex Co., Ltd. fully repaid the remaining balance of 25 billion KRW out of 272 billion KRW in financial debt on the 4th.

Accordingly, Mokpo Daeyang Industrial Complex Co., Ltd., established in 2012 for the development and sale of the Daeyang Industrial Complex, plans to complete legal procedures such as project settlement, dissolution resolution, and liquidation announcement, and finish the liquidation process by August to September.

To reduce the interest burden (3.4% interest rate) on the financial debt of Daeyang Industrial Complex Co., Ltd., the city issued 80 billion KRW in local bonds (1.9% interest rate) in 2019 with the consent of the Financial Supervisory Service consulting and the city council.

Since then, the city has made early repayments of 30 billion KRW in local bonds, including 20 billion KRW in 2021 and 10 billion KRW in March this year, and the 30 billion KRW maturing in May will be repaid with funds already secured in this year's supplementary budget. The remaining 20 billion KRW will be repaid through sales proceeds, resolving all debts related to the Daeyang Industrial Complex development within this year.

Although there were high concerns that the Daeyang Industrial Complex would be a financial obstacle for the city, it is now regarded as an industrial complex supporting the local economy.

This is supported by a high sales rate. The city judged that accelerating sales was important to reduce financial burdens, so not only the responsible department but all public officials actively promoted a "one department, one company attraction" campaign. Additionally, the city collaborated with its bank to promote the Daeyang Industrial Complex nationwide through its branches.

Efforts were also made to secure government policy support. In November last year, the designation of the special support area for small and medium enterprises was extended for two years, allowing resident companies to receive various institutional benefits such as restricted competitive bidding, local government negotiated contracts, loan support, and preferential guarantees until 2023.

Moreover, in October 2019, it was designated as a National Energy Industry Convergence Complex, creating incentives for energy-related companies to settle in.

Thanks to these efforts, the Daeyang Industrial Complex currently shows a 98% sales rate, with only three unsold industrial lots remaining, and is expected to be fully sold within this year. With 146 companies settled, investment contracts worth 800 billion KRW, and over 1,200 new jobs created, it is transforming into a key hub of Mokpo's economy.

Going forward, the Daeyang Industrial Complex is expected to play a major role as a center for the seafood processing industry through the concentrated settlement of kim processing companies and the establishment of a seafood export complex, as well as a hub for renewable energy and logistics.

A city official stated, “The Daeyang Industrial Complex, once a source of concern, is now almost fully sold and establishing itself as a pillar supporting the local economy. We will continue administrative efforts toward the complete sale of the Daeyang Industrial Complex and the creation of quality jobs.”

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