DK Asia has signed a strategic partnership agreement with Kim & Chang to advance the Royal Park City Phase 2 development project in Incheon’s Geomdan district.
On June 8, DK Asia announced that it had entered into an agreement with Kim & Chang for the successful execution of the 2.6 million square meter, 16,800-unit development project. The agreement focuses on establishing a strategic cooperation framework that encompasses the entire project, including permits, municipal cost negotiations, taxation, compensation, claims, and responses to complaints and disputes.
Under this agreement, Kim & Chang will provide legal advice on permits, municipal cost negotiations, various contracts, taxation, compensation and claims, as well as responses to complaints and disputes. DK Asia plans to proactively manage legal and administrative risks that may arise during the large-scale urban development process to enhance project stability.
Industry experts note that the importance of specialized legal advisory systems is increasing, as many large urban development projects are experiencing prolonged timelines due to issues related to permits, compensation, and infrastructure cost negotiations. One industry insider stated, "In large urban development projects, the processes of obtaining permits and negotiating compensation often significantly influence the speed of the project, alongside its feasibility. There is a growing trend of establishing specialized legal advisory systems from the early stages of such projects."
This collaboration builds on the experience gained from the first phase of the Royal Park City project. DK Asia reported that it completed the relocation process after negotiating compensation for structures within the 1st phase site, which encompasses 6,305 units and 1.09 million square meters. The company also mentioned that it is working on expanding infrastructure, including the establishment of new schools, LED streetlights along the Baekseok Bridge to Bongsu Road, sound barriers, street trees, and large parks.
The Royal Park City Phase 2 development project aims to supply 16,800 housing units across a 2.6 million square meter site in Incheon’s Geomdan district. With major development projects such as Geomdan New Town, Cheongna International City, and Gyeyang Techno Valley underway in the northwest region of Incheon, the demand for housing and the need for infrastructure expansion are growing. Industry analysts believe that the establishment of transportation, education, and living infrastructure, along with various permitting processes, will be key variables influencing the progress of this large-scale project.
Previously, DK Asia secured a strategic financial agreement with Hana Bank to establish a funding framework. The company is currently working to secure the construction costs needed for the initial phase, which involves 8,800 units. As a result, Hana Bank will oversee financial management and funding, while Kim & Chang will provide legal advice to support the project’s advancement.
DK Asia plans to develop the second phase into a future-oriented complex city featuring a waterfront structure inspired by Cheonggyecheon and a 36-hole park golf course. The company envisions creating a mixed-use city that integrates residential, commercial, and cultural functions, linking it with key industrial and living infrastructures in the Geomdan and Cheongna areas, including Hana Financial Town, International St. Mary’s Hospital, Asan Medical Center in Cheongna, LG Magna, Korean Air, and Starfield Cheongna.
Ryu Yong-ho, head of the Construction Group at Kim & Chang, stated, "The 2.6 million square meter Royal Park City Phase 2 project is expected to contribute to the development of large-scale urban infrastructure and the revitalization of the local economy. We will comprehensively review various issues that may arise during the project execution to support stable progress."
Kim Jeong-mo, chairman of DK Asia, remarked, "Through our strategic partnership with Kim & Chang, we have strengthened the foundation for stable project advancement. We will accelerate the creation of a future-oriented complex city that integrates global finance with residential, commercial, and cultural functions."
* This article has been translated by AI.
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