Gyeonggi Gimpo Urban Corporation's Geolpo 4 and Gamjeong 4 urban development projects have entered full-scale execution, with the corporation preparing to raise approximately 2 trillion won ($1.5 billion) in project financing (PF) in the second half of the year.
According to Gimpo Urban Corporation on Wednesday, the Geolpo 4 District urban development project received approval for the third revision of the development plan and the first revision of the implementation plan from the city of Gimpo on April 30. The approval expands the project by 1,188 units to a total of 7,761 units.
Plans to build two new elementary schools remain intact, while the residential function of specialized facility sites has been enhanced to improve conditions for attracting a complex shopping mall.
The corporation brought in Hoban Construction as a replacement investor, resolving credit risk that had emerged as the previous construction investor faced a workout crisis. After issuing a compensation notice in the first half of the year, the corporation aims to pay compensation in the second half. Construction is scheduled to begin in 2027, with completion targeted for the second half of 2029.
The Gamjeong 4 District urban development project is seeing renewed interest following the preliminary feasibility study approval for the Subway Line 5 extension to Gimpo and Geomdan. After the implementation plan was announced last year, a compensation council was held early this year and appraisal procedures began. The corporation plans to complete the compensation process and accelerate the project through prompt financing.
◇Financial Stability Secured on Back of 3 Trillion Won Funding Track Record
Since CEO Lee Hyung-rok took office, Gimpo Urban Corporation has completed funding totaling 3.0534 trillion won ($2.25 billion) for the Hangang Cinepolis and Pungmu Station Area projects despite high interest rates and a tight PF market. On this basis, the corporation plans to proceed with the additional 2 trillion won funding for Geolpo 4 and Gamjeong 4 districts in the second half without disruption.
Apartment sales currently underway at Pungmu Station Area and Hangang Cinepolis are progressing smoothly, suggesting no issues with debt repayment. The corporation is managing financial risk through a structure in which it secures project control with a 50.1% stake while the private sector bears repayment responsibility.
"Geolpo 4 and Gamjeong 4 are core projects that must succeed for the balanced development of Gimpo," Gimpo Urban Corporation CEO Lee Hyung-rok said. "We will complete PF execution and compensation procedures within the second half of the year."
