'Osan Urban Corporation Establishment' on Track... Related Ordinance Passed by City Council

Facility Corporation Functions Maintained... First Project Likely to Be 'Unamtteul AI City'
Mayor I Gwonjae: "We Will Thoroughly Supervise to Prevent Negligence and Poor Management"

The establishment of 'Osan Urban Corporation,' which has been continuously promoted by the 8th term of Gyeonggi-do Osan City’s administration, is now on track. This is because the Osan City Council passed the related ordinance on the 13th, thereby providing the legal basis for the corporation's establishment.

According to Osan City and the Osan City Council on the 13th, the City Council handled the 'Consent for Organizational Change of Osan City Facility Management Corporation,' 'Ordinance on the Establishment and Operation of Osan Urban Corporation,' and 'Ordinance on the Abolition of the Ordinance on the Establishment and Operation of Osan City Facility Management Corporation' at the plenary session held that day.

Following the City Council’s approval of the capital investment consent of 9.9 billion KRW for the establishment of Osan Urban Corporation at the plenary session at the end of last year, the handling of these three ordinances and consent forms on this day effectively completed the legal procedures for the establishment of Osan Urban Corporation.

The establishment of Osan Urban Corporation is considered a key project of Lee Gwon-jae, mayor of Osan City in the 8th term. From the beginning of his term, Mayor Lee has been promoting the plan to transform the existing 'Osan City Facility Management Corporation' into an 'Urban Corporation' system with goals such as ▲preventing indiscriminate development through systematic urban development ▲securing the principal authority and public nature of development projects ▲maximizing the public share of development profits to return revenue to the local community. However, progress had been limited due to the City Council’s negative stance.

Mayor Lee stated, "I express my gratitude to Chairman Seong Gil-yong and the council members who united in cooperation to establish an urban corporation capable of independently promoting a 500,000 self-sufficient connected city," adding, "We will expedite administrative processes to ensure the Osan Urban Corporation can be launched as soon as possible."

Launching as a 'Hybrid-type' Urban Corporation with Both Corporation and Facility Management Functions

Osan Mayor Lee Gwon-jae is explaining the necessity of establishing the 'Osan Urban Corporation' during the briefing on the designation of 'Segyo 3 District' in November last year.
[Photo by Osan City]

The city plans to launch Osan Urban Corporation as a 'hybrid-type' entity that combines the functions of the existing Facility Management Corporation and Urban Corporation. Accordingly, entrusted projects such as the operation of sports facilities, public parking lots, and the sale of volume-based waste disposal bags, which have been conducted by the Facility Management Corporation, will continue as before.

Alongside this, the Urban Corporation plans to participate in new projects initially by taking over 'construction agency projects' or planned development projects. Participation in 'construction agency projects' involves being delegated authority over detailed design, bidding, groundbreaking, supervision, completion, construction management (CM), and complaint handling related to public buildings, infrastructure expansion, and renovation within the jurisdiction, thereby forming initial capital.

The city’s plan is to increase capital to a certain scale through this method, enabling the Urban Corporation to participate in equity shares of large-scale urban development projects to enhance profitability or to engage in key projects in other regions.

Regarding organization and personnel, to ensure smooth execution of initial projects such as the 'Unamtteul AI City' urban development project and construction agency projects, the Urban Corporation will start with six members in the development project team, including three city-dispatched employees, while maintaining the existing Facility Management Corporation staff.

The First Project: 'Unamtteul AI City'

A bird's-eye view of the 'Unamtteul AI City' urban development project, expected to be the first development project by 'Osan Urban Corporation'. [Image source=Osan City]

For the 'Unamtteul AI City' project, which will be the corporation’s first project, the city plans to transfer its equity stake to the Urban Corporation. According to the 'Local Public Enterprises Act,' the corporation must have capital equivalent to 10% of the investment amount to participate in the project.

The city holds a 19.8% stake in the Unamtteul AI City project (valued at approximately 990 million KRW). The Urban Corporation must secure 9.9 billion KRW in capital. Since the city already obtained consent for the investment from the City Council at the end of last year, it is judged that the equity transfer can proceed immediately.

Mayor Lee expects that through the transition to the Urban Corporation and participation in various development projects, the city will secure more revenue than under the Facility Management Corporation system and reinvest it for the benefit of Osan citizens. He particularly believes that if the corporation increases its participation in large-scale projects such as the semiconductor materials, parts, and equipment industrial complex development, redevelopment and reconstruction projects of aging old downtown and apartments, and new public institution construction, the Urban Corporation system will succeed.

To this end, Mayor Lee plans to expand the foundation for the Urban Corporation’s participation in large-scale projects such as the development of the Segyo 1 District terminal site, development utilizing reserved land in Naesammi-dong, and development of the relocated reserve forces training site.

Mayor Lee said, "Having led the establishment of the Urban Corporation through citizen cooperation and bipartisan collaboration, we will ensure the launch of a solid Urban Corporation," adding, "We will thoroughly manage and supervise to prevent concerns about financial waste due to reckless or poor management from becoming a reality."

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