First installment of 300 billion won cash contribution to fund traffic infrastructure
The South Jeolla Province-Gwangju integrated special city announced Wednesday that Champions City Bokhapdaebaljeon PFV, the developer of the former Jeonbang and Ilshin Spinning site, has paid the first installment of its public contribution — 15.4 billion won ($11.3 million) — out of a total cash obligation of 300 billion won ($221 million).
The payment follows a public contribution agreement signed between the city and the developer in July 2024, with the remaining installments to be paid in stages through 2032.
The total public contribution amounts to 589.9 billion won, of which 289.9 billion won will be fulfilled through the developer's construction and donation of infrastructure such as roads and parks. The remaining 300 billion won is to be paid in cash over five years, from ground-breaking to completion.
Public contributions are a mechanism under the National Land Planning and Utilization Act whereby developers return a portion of profits from land development in exchange for regulatory relief. The funds may be used for infrastructure and long-unexecuted urban planning facilities.
The city plans to direct the contribution funds toward transportation projects designed to get ahead of the increased traffic demand expected as large-scale residential and commercial facilities are built in the Gwangcheon area.
"Public contributions tied to the development of the former Jeonbang and Ilshin Spinning site are now being carried out in earnest," said Lee Han-min, head of the urban planning division at the South Jeolla Province-Gwangju city government. "We will concentrate the secured funds in areas where residents can feel a tangible difference, so that the benefits of development flow back to the local community."
sij@heraldcorp.com
