Gohung 'Donggang Specialized Agro-Industrial Complex' Stagnates for 5 Years

Total Project Cost of 30.8 Billion KRW, Scheduled for Completion by the End of December 2017

Goheung County Office

[Asia Economy Honam Reporting Headquarters Reporter Kim Chunsu] The Donggang Specialized Agricultural and Industrial Complex project in Goheung-gun, Jeollanam-do, which has been promoted since 2015, is currently embroiled in legal disputes with the implementing company after five years, making the project's progress uncertain and raising concerns about wasting public funds.

This project began with a groundbreaking ceremony on August 24, 2016, in Jangdeok-ri, Donggang-myeon, Goheung-gun, aiming to establish a hub for processing and distribution of local agricultural and marine products.

Goheung-gun invested a total project cost of 30.8 billion KRW to develop an industrial facility site of 207,000㎡, a public facility site of 45,000㎡, a support facility site of 2,000㎡, totaling 299,000㎡, with completion scheduled for the end of December 2017.

At the time of project promotion, the county anticipated effects such as increased resident income and improvement of the local industrial structure by developing a specialized agricultural and industrial complex linked to the existing clean food complex, reflecting the need to foster a specialized processing complex for abundant local agricultural and marine products.

The specialized agricultural and industrial complex was promoted through a direct development method by the actual demanders, with Donggang Specialized Complex Development Co., Ltd., a special purpose corporation, acting as the implementing company to develop, directly use, and sell the industrial complex, while Goheung-gun provided administrative support for the complex development.

The county first invested 2.2 billion KRW to improve accessibility by completing the construction of an entrance and exit road connected to National Road No. 15.

Additionally, the project was selected as a regional specialized complex by the Ministry of Agriculture, Food and Rural Affairs, receiving 7.2 billion KRW in national subsidies to lower the occupancy sales price, and everything seemed to be progressing smoothly.

However, the project faced a crisis as the implementing company responsible for private investment failed to make the investment.

To make matters worse, in October 2018, the Board of Audit and Inspection conducted an audit on improper subsidy support for the Donggang Specialized Agricultural and Industrial Complex, ordered the recovery of 7.6 billion KRW in subsidies paid to the implementing company, and notified the cancellation of the company's designation.

Along with this, former County Governor Park and the public officials in charge at the time were reported. In August last year, the police found no charges against former Governor Park but sent 15 people, including 12 Goheung County officials and 3 project implementing company personnel, to the prosecution with indictments.

The Board of Audit and Inspection judged that Goheung-gun's support of 5.4 billion KRW for the Donggang Specialized Agricultural and Industrial Complex and 2.2 billion KRW for the logistics center construction project, totaling 7.6 billion KRW, was improper amid the project's stagnation.

From the project's early stages, there were public criticisms that Goheung-gun excessively promoted the project and inflated occupancy demand, and the county cannot escape responsibility for inadequate verification during the implementing company selection process.

Moreover, a sewage treatment plant with a total project cost of about 4.5 billion KRW was constructed to handle wastewater generated by the specialized agricultural and industrial complex.

According to Goheung-gun, the sewage treatment plant currently shows a 90% progress rate, meaning most of the construction is complete.

An expert in civil engineering explained, "If wastewater inflow does not occur and the facility does not operate, the installed machinery may rust, requiring reinstallation when operation eventually begins," adding, "Goheung-gun will have to spend huge maintenance costs managing a facility whose operation time is uncertain."

A resident of Goheung-gun pointed out, "While public officials are eager to show achievements such as population inflow and job creation, it is questionable whether it was necessary to install a sewage treatment plant facility for the Donggang Specialized Agricultural and Industrial Complex, whose project implementation is uncertain despite massive public investment."

A Goheung-gun official stated, "We plan to proceed immediately once the legal disputes are resolved," and added, "It is expected to take at least 2 to 3 years going forward."

This content was produced with the assistance of AI translation services.