Financial support drive targets 4X transformation of aging industrial complexes

HUG President Choi In-ho (third from right) and Korea Industrial Complex Corp. Chairman Lee Sang-hoon (third from left) pose with officials at the MOU signing ceremony held Friday. [HUG]
HUG President Choi In-ho (third from right) and Korea Industrial Complex Corp. Chairman Lee Sang-hoon (third from left) pose with officials at the MOU signing ceremony held Friday. [HUG]

Korea Housing & Urban Guarantee Corp. (HUG) has teamed up with Korea Industrial Complex Corp. to improve conditions at aging industrial complexes and develop next-generation industrial parks.

HUG announced Sunday that it signed an MOU with Korea Industrial Complex Corp. on Friday at Taeheung Building in Yeouido, Seoul, to support environmental improvements and regeneration of industrial complexes. The agreement aims to build infrastructure within aging parks and accelerate a so-called 4X transformation, in support of the government's balanced regional development goals and its "5-pole, 3-special" national growth strategy.

The 4X framework covers four transitions: AX (AI transformation), GX (green transformation), YX (youth-centered transformation) and NX (new-industry transformation).

At the core of the agreement is a combination of HUG's financial capabilities — built through its management of the National Housing and Urban Fund and guarantee operations — with Korea Industrial Complex Corp.'s expertise in developing and managing industrial complexes.

The two organizations plan to link fund investment with loans and guarantees for mixed-use development projects within industrial complex regeneration zones, targeting sites that incorporate industrial, business and support facilities.

Under the arrangement, project developers that have secured approval from Korea Industrial Complex Corp.'s industrial complex environment improvement fund and completed licensing procedures will be able to receive loans and guarantees from HUG on an expedited basis. The two sides expect this to ease financing burdens on developers and speed up project timelines.

The organizations will also establish an operational framework to accelerate the 4X transformation, forming a working-level consultative body to pursue regulatory improvements needed to implement the MOU and jointly plan new initiatives in support of government industrial complex policy.

"Industrial complexes were once the engine of national economic growth, but their deterioration has dragged down regional economies as a whole," HUG President Choi In-ho said. "This agreement will breathe new life into aging industrial complexes and serve as a catalyst for regional economic recovery and balanced development."

Korea Industrial Complex Corp. Chairman Lee Sang-hoon said the partnership with HUG would allow the organization to steadily advance its 4X transformation strategy and turn industrial complexes into hubs for regional growth and youth settlement.

Meanwhile, HUG has recently taken steps to strengthen its organizational culture, opening a direct hotline to its standing auditor and conducting a series of proactive administration training sessions for employees to boost both integrity and public service responsiveness.


quq@heraldcorp.com