Gyeonggi Province Applies to Government for 700 Billion Won in GH Construction Bonds to Advance Third-Stage New City Projects

[Suwon Ilbo=Reporter Kim Gapdong] Gyeonggi Province announced on the 12th that it applied to the Ministry of the Interior and Safety on the 10th for approval to issue 700 billion won in construction bonds to actively advance third-stage new city projects including Goyang Changneung, Namyangju Wangsuk 1·2, and Yongin Platform.

This construction bond issuance is intended to secure stable financial resources for Gyeonggi Housing and Urban Development Corporation (GH) to enable swift land compensation and site development projects. Construction bonds require prior approval from the Minister of the Interior and Safety when the planned bond issuance amount is 300 billion won or more.

Funds raised through the construction bond issuance will be used for land compensation costs and site development project costs in each district. GH is currently undertaking multiple large-scale development projects and needs to secure liquidity for stable project implementation.

To ease the financial burden on local public enterprises from the construction bond issuance, Gyeonggi Province continues to propose related institutional improvements and amendments to laws and regulations for expanding local public enterprise capital to the central government, including the Ministry of the Interior and Safety and the Ministry of Land, Infrastructure and Transport. GH is also accelerating self-help measures including early sale of inventory assets and expansion of public rental REITs.

The province plans to cooperate closely with GH to align with the government's direction of "expanding housing supply in the Seoul Metropolitan Area and improving supply speed," continuing to pursue prompt and systematic project implementation.

Lee Myeong-seon, director of Gyeonggi Province's Spatial Strategy Division, said, "In line with the new government's housing supply expansion plan, we will cooperate with GH to provide housing early in Seoul Metropolitan Area public sites and pursue institutional improvements to advance projects swiftly."