Shinhan Bank Arranges Financing for Bokjeong Station Area Development Project... KRW 2.28 Trillion

Strategic Collaboration with Hyundai Engineering & Construction Pays Off

Shinhan Bank said on October 8 that it had successfully arranged KRW 2.28 trillion in financing for a project financing (PF) project to develop the area around Bokjeong Station in Gyeonggi Province.

The Bokjeong Station Area Mixed-Use Development Project is a large-scale development that will create residential, office and commercial facilities around Bokjeong Station, a key transportation hub connecting Seoul and the Seoul metropolitan area. An office and business complex with a total gross floor area of approximately 500,000 pyeong will be built across three blocks. In particular, Block 2 will house the HMG Future Complex, which will bring together artificial intelligence (AI), software (WS) and research and development (R&D) functions. Residential facilities, including 1,573 officetel units, are also planned.

Shinhan Bank joined the project as the lead financial investor (FI) in July 2023, based on strategic cooperation with Hyundai Engineering & Construction. Since then, as the financial arranger, it has handled the full range of financing arrangements, from feasibility reviews and financial structuring to recruiting financial institutions and securing funds. It arranged KRW 1.9 trillion in loans for the first main PF and then KRW 380 billion in loans for the second main PF, successfully completing financing totaling KRW 2.28 trillion.

Shinhan Bank recently completed PF financing arrangements totaling KRW 689 billion for the development of office facilities in Bongnae District 3 near Seoul Station, working with Hyundai Motor Securities. For the project, which is being pursued by a REIT jointly funded by the National Pension Service and SK D&D, Shinhan Bank directly lent KRW 584 billion of the total PF financing.

A Shinhan Bank official said, "This financing arrangement is an example of how we have secured stable funding for a key mixed-use development project in the Seoul metropolitan area through our strategic cooperation with Hyundai Engineering & Construction. We will continue to identify development projects with strong business prospects and future value, and strengthen our role in productive finance that supports real economic growth by drawing on our professional financing capabilities."

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