Real estate sales by ‘power generation companies’ such as Korea Electric Power Corporation, there are also a lot of land and buildings in ‘station area’
[서울=뉴스프리존] Reporter Koh Seung-eun = In relation to the Yoon Seok-yeol government’s plan to sell assets to the private sector to increase the productivity and efficiency of public institutions, high-priced ‘yolk land’ such as Gangnam, Songpa, Seongdong, Gwangjin, Seongnam, Gyeonggi Province, and It is pointed out that the process is rushed without analysis. In other words, there is a concern that the private sector represented by the chaebol will be given great benefits.
According to the ‘Five-Year Financial Consolidation Plan for Financial Risk Institutions’ submitted by the Ministry of Strategy and Finance on the 3rd, Kang Jun-hyeon (Sejong-eul) of the Democratic Party of Korea (Democratic Party) of the National Assembly Planning and Finance Committee is reportedly planning to sell regarding 4.275.6 trillion won of assets. Among the real estate assets selected by public institutions for sale, there were many so-called ‘yolk land’ real estate such as the central area of Seoul and the metropolitan area.
The majority of asset sales were concentrated in five power generation companies including KEPCO. KEPCO had the largest asset sale with KRW 1.54 trillion, followed by Korea Western Power with KRW 307.7 billion, Korea Midland Power with KRW 272.1 billion, Korea East-West Power with KRW 222.7 billion and Korea South-East Power with KRW 196.3 billion.
In the case of Korea Electric Power Corporation, it plans to sell 13 regional headquarters and substation sites located in the Seoul metropolitan area, including areas with easy development such as the Majang-dong Material Center in Seongdong-gu and Hwayang Substation in Gwangjin-gu.
In the case of the site of the former education and training room owned by Korea District Heating Corporation, the estimated sale price is 50 billion won, located in the area adjacent to Suseo Station in Gangnam-gu.
Among the assets for sale submitted by the Korea Land and Housing Corporation, the Gyeonggi Regional Headquarters building is a newly discovered asset that is estimated to have a value of 460 billion won. The building is located in the station area in front of Ori Station in Bundang-gu, Seongnam-si, so its value is expected to increase in the future, but it was included in the sale assets.
In particular, when the Gyeonggi Regional Headquarters office is sold, the Gyeonggi Headquarters is in a situation where it has to lease or purchase another office building, so it is not an unreasonable sale, Kang Jun-hyeon’s office pointed out.
In addition, the Korea Industrial Complex Corporation, which is not a financial risk institution, but is subject to a ‘mid- and long-term financial management plan’, is also known to plan to sell a site worth 123.7 billion won in Geumcheon-gu, Seoul. It is located near the Gasan Digital Complex, where Lines 1 and 7 pass at the same time, so transportation access is high, and it is included in the sale list even though it is an area with high potential for future development.
“If we focus on short-term financial structure improvement without a specific blueprint, there is a side effect of selling net assets of public institutions at a low price, and we should be wary of suspicions of preferential treatment in the sale process,” said Rep. Kang Jun-hyeon. We need to think regarding how to use it as a public good first,” he pointed out.
According to the fiscal consolidation plan submitted by the Ministry of Strategy and Finance, the amount of debt reduction and capital expansion for five years from 2022 is a total of 34 trillion won. Fiscal consolidation following business adjustments accounted for the largest share, amounting to approximately 13 trillion won (38.3%). In addition, it is an announcement that it will “sound” 10 trillion won in capital expansion and 5.3 trillion won in management efficiency, and sell assets and expand profits.
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