GH to Issue 2.36 Trillion Won in Construction Bonds, Boosting Five Major Projects Including Gwangmyeong-Siheung Public Housing District

Gyeonggi Province has received approval from the Ministry of the Interior and Safety to issue construction bonds worth 2.36 trillion won to fund five projects by Gyeonggi Housing & Urban Development Corporation (GH). As a result, compensation procedures for major projects, including the Gwangmyeong-Siheung Public Housing District, are expected to gain momentum.

According to Gyeonggi Province on June 7, the province recently received an official letter from the Ministry of the Interior and Safety titled "Results of the 2026 First Half Local Public Construction Bond Issuance Pre-Review Approval," which included these details.

Large-scale land development projects require substantial compensation and construction costs, making swift financing a critical factor for the success of the projects. However, it is virtually impossible for local governments or public companies to raise trillions of won in cash on their own.

In such cases, local public corporations issue "construction bonds," a type of promissory note, to raise the large sums needed for public projects. Approval from the Ministry of the Interior and Safety is required to issue these construction bonds. The Ministry reviews applications for construction bond issuance twice a year to prevent indiscriminate debt increases. Gyeonggi Housing & Urban Development Corporation (GH) obtained approval for bond issuance through the first half review.

The five projects that will utilize the construction bonds are: ▲ Gwangmyeong-Siheung Public Housing District ▲ Ilsan Technovalley Urban Development Project ▲ Hanam Gyosan Public Housing District ▲ Gwacheon Public Housing District ▲ Gwangmyeong-Siheung High-Tech Industrial Complex.

Gyeonggi Provincial Government

The Gwangmyeong-Siheung Public Housing District is a core public housing project covering 12.71 million square meters in the Gwangmyeong and Siheung areas, being promoted in cooperation with Korea Land and Housing Corporation (LH). Out of the total supply plan of 37,000 public housing units, GH will provide 7,400 units. Through integrated development that combines residential environment improvement with transportation, education, and welfare infrastructure, the project is expected to contribute to expanding housing supply and stabilizing housing in the Seoul metropolitan area.

In this regard, in March, the Ministry of Land, Infrastructure and Transport announced that the compensation schedule for the district would be moved up from November to July of this year. With the issuance of these construction bonds, the compensation procedures are also expected to proceed smoothly. The remaining four projects will also utilize the construction bonds for compensation and construction costs, aiming to stably advance major public housing projects.

Lee Myungseon, Director of Spatial Strategy at Gyeonggi Province, stated, "In line with the government's 'Plan to Expand Housing Supply,' Gyeonggi Province and GH will work closely together to ensure that sufficient housing is supplied early to the metropolitan public land, and we will simultaneously pursue necessary institutional improvements to promote swift and proactive progress of these projects."

Previously, Gyeonggi Province had continuously proposed improvements in related systems to the government in order to ensure stable implementation of key policies and to strengthen GH's capital base. In March, as a result of proposals from Gyeonggi Province and GH, the Ministry of the Interior and Safety revised its "Local Construction Bond Issuance and Management Standards," raising the issuance limit for local construction bonds. Previously, total liabilities were deducted from three times net assets, but under the revised standards, only the total amount of bond issuance is deducted from three times net assets, increasing investment capacity.

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