Gyeonggi Province Applies to Government for 700 Billion Won GH Bond Issuance to Accelerate Third New Cities Project

[Suwon Ilbo=Reporter Kim Gap-dong] Gyeonggi Province announced on the 12th that it applied to the Ministry of the Interior and Safety on the 10th for the issuance of bonds totaling 700 billion won to accelerate the third new cities project, including Goyang Changneung, Namyangju Wangsuk 1·2, and Yongin Platform.

The bond issuance is intended for the Gyeonggi Housing & Urban Development Corporation (GH) to secure stable financial resources for expedited land compensation and site development projects. Bond issuances with a planned issuance amount of 300 billion won or more require prior approval from the Minister of the Interior and Safety.

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

To ease the financial burden on local public enterprises due to bond issuance, Gyeonggi Province continues to make recommendations to the central government, including the Ministry of the Interior and Safety and the Ministry of Land, Infrastructure and Transport, regarding relevant system improvements and amendments to laws for expanding local public enterprise capital. GH is also accelerating self-help measures such as early sale of inventory assets and expansion of public rental REITs.

The province plans to work closely with GH to align with the government's policy direction of "expanding housing supply and improving supply speed in the Seoul metropolitan area" and will continue to pursue swift and systematic project implementation.

Yi Myeong-seon, Director of the Spatial Strategy Division at the Province, said, "In line with the new administration's housing supply expansion plan, we will cooperate with GH to supply housing early in Seoul metropolitan public land, pursue system improvements, and proceed with projects swiftly."