Gyeonggi Province Petitions Government to Issue 700 Billion Won in GH Construction Bonds to Advance Third-Phase New Cities Project

[Suwon Ilbo=Kim Gapdong Reporter] Gyeonggi Province announced on the 12th that it filed a petition with the Ministry of the Interior and Safety on the 10th to issue construction bonds totaling 700 billion won to accelerate the third-phase new cities project including Goyang Changneung, Namyangju Wangsuk 1·2, and Yongin Platform.

The issuance of construction bonds is aimed at securing stable financial resources for the Gyeonggi Housing and Urban Development Corporation (GH) to carry out swift land compensation and site development projects. When the planned amount of bond issuance is 3 billion won or more, prior approval from the Minister of the Interior and Safety is required.

Funds procured through construction bonds will be used for land compensation costs and site development project costs within each district. As GH is currently pursuing multiple large-scale development projects, securing liquidity is necessary for stable project implementation.

To ease the financial burden on local public enterprises resulting from construction bond issuance, Gyeonggi Province is continuously proposing improvements to related institutions and amendments to laws 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 its own measures including early sale of inventory assets and expansion of public rental REITs.

The Province plans to work closely with GH to continue advancing swift and systematic project implementation in line with the new government's policy direction of 'expanding housing supply in the Seoul metropolitan area and improving supply speed.'

Lee Myeong-seon, Director of the Spatial Strategy Division of Gyeonggi Province, stated, "In accordance with the new government's housing supply expansion measures, we will collaborate with GH to enable early housing supply on Seoul metropolitan area public land and promote institutional improvements to proceed with projects promptly."