South Korea explores funding for New Clark City’s massive housing projec

South Korea is considering funding a proposed 3,000-unit housing project in New Clark City in Tarlac province.

State-run Bases Conversion and Development Authority (BCDA) signed a nonbinding agreement with the Korea Overseas Infrastructure and Urban Development Corporation (KIND) to study the project's feasibility.

The agreement was signed during the Philippines-Korea Business Forum in Manila by BCDA president and CEO Joshua Bingcang and KIND's urban and property department head Ryan Kwangbok Lee.

Bingcang said the six-month study would assess the project's potential, and if successful, the South Korean government could provide an investment of P9 billion. "It will be located initially on a 5-hectare site in New Clark City, but our master plan includes areas designated for mass housing of various types," Bingcang said in an interview.

He said they aim to finalize negotiations by the end of the year and even break ground before 2024 begins.

The housing units, intended for government employees and minimum wage earners, will be available for lease. However, there is a provision that could allow tenants to convert their leased units into freehold properties if future legislation permits such a setup. Monthly rental rates are expected to range from P5,000 to P7,000 per unit.

BCDA also signed a memorandum of understanding with RMS Platform, a South Korean firm, to explore the development of smart city infrastructure within New Clark City. Bingcang said this would include enhancing internet and telecommunications systems throughout the area.

The study for the smart city initiative will also take at least six months, after which the parties will assess its viability. If feasible, a public-private partnership or another business model could be pursued to implement the project.