Songdo International Business District Subject of Largest Financing in Korean History

Songdo International Business District Subject of Largest Financing in Korean History

November 21, 2007

$2.7 Billion Financing Agreement with Shinhan Bank
Consortium Will Result in Accelerated Development of Songdo
IBD

    INCHEON, South Korea, Nov. 21 /Xinhua-PRNewswire/ -- 

    New Songdo International City Development, LLC today
concluded a $2.7 billion syndicated financing agreement
with arranger Shinhan Bank and 12 other participating
banks, thought to be the largest such real estate financing
in Korean history. New Songdo International City Development
(NSIC), a 70/30 joint venture between New York's Gale
International and POSCO E&C, is developing the 1,500
acre Songdo International Business District in Incheon,
South Korea. Songdo International Business District (IBD)
is both a Korean national project and a unique
international partnership, although one that remains
essentially a private initiative.

    Shinhan Bank is directly funding nearly $1.7 billion of
the $2.7 billion financing. Other participating institutions
include the Industrial Bank of Korea (IBK), Hana Bank, Kumho
Life Insurance, the Korean Federation of Community Credit
Cooperatives (KFCC), Tong Yang Life Insurance, The Daegu
Bank, Jeon Buk Bank, the Kyong Nam Bank, Pusan Bank,
Shinhan Life Insurance, and Dongbu Life Insurance. The
financing will be used to purchase an additional land
parcel that is critical to the Songdo IBD master plan, as
well as fund construction and the development of additional
Songdo IBD facilities.  It also is expected to be used in
part to consolidate and repay prior financing. 

    The financing will accelerate commercial development in
the city, and help attract further domestic and foreign
investment. Songdo IBD's commercial center offers 45
million square feet of office space in key projects such as
the Northeast Asia Trade Tower, Gateway Center and
International Plaza to leading Korean and multinational
companies.

    Stanley C. Gale, Chairman and Managing Partner of Gale
International, said, "This historic financing will be
a catalyst, opening the gates of investment from domestic
and foreign concerns. Songdo is moving full speed
ahead."

    John B. Hynes, III, CEO and Managing Partner of Gale
International said, "Currently we have $5 billion of
construction underway in Songdo IBD, representing 45
separate buildings in 12 project areas. This financing will
enable us to purchase the remaining 300 acres of land from
the city and to jumpstart the next phase of our development
activity."

    Shinhan Bank's Vice President Lee Hyuwon said,
"Songdo IBD will be a growth engine for Korea's next
generation. Shinhan Bank will do all it can to help make
sure this happens."

    POSCO E&C Senior Vice President Cho Yong-kyung
said, "Through the strong partnership between Gale
International and POSCO E&C, the IBD has shown visible
progress in the past two years. Core facilities are well
underway, and I am sure that the current project financing
will enable the continued, steady development of Songdo
International City."

    Gale International is a premier international real
estate development and investment company headquartered in
New York with offices in Boston; Irvine, California; Seoul
and New Songdo, South Korea.

    Songdo IBD, "The Gateway to Northeast Asia,"
officially opens in August, 2009 as the first new city in
the world designed and planned as an international business
district. This $30 billion, 100-million square foot,
master-planned metropolis is thought to be the largest
private real estate venture in the world. Songdo IBD will
be connected to the Incheon International Airport, one of
the world's busiest, by a new 7.4 mile highway bridge; and
linked by subway to Seoul, just 35 miles away.  It is
estimated that Songdo IBD will be home to 65,000 people and
that 300,000 will work there. Songdo IBD is located within
the Incheon Free Economic Zone. 

    Songdo IBD will offer every conceivable amenity
including a world class hospital, an international
preparatory school, museums, a 100-acre Central Park, and
the Jack Nicklaus Golf Club Korea. Songdo IBD will be 40
percent green space, and long-term sustainability and the
minimization of the city's carbon footprint have been
considered in every design and engineering decision.
Indeed, Songdo IBD was recently named a "green
urbanism" pilot project by the U.S. Green Building
Council.

    Songdo IBD's iconic 65-story Northeast Asia Trade Tower
will stand as Korea's tallest building and the stunning
"Convensia" Convention Center will be Korea's
largest column-free space. The project will include
forty-five million square feet of office space, thirty
million square feet of residential space, ten million
square feet of retail, five million square feet of hotel
space and ten million square feet of public space. More
information can be found at www.Songdo.com. 


    For more information, please contact:

    Gale International

    International and U.S. Queries:
    Mary Lou DiNardo
    Tel:   [phone]
    Email: [e-mail]

    Domestic ROK Queries:
    Hyewon Chang
    Tel:   [phone]
    Email: [e-mail]