Changwon City Holds City Council Report Meeting on Verification of Changwon Cultural Complex Town Project Revenue

Projected Profit of 5.4~6.7% After Tax Relative to Organizer's Revenue

[Asia Economy Yeongnam Reporting Headquarters Reporter Park Saeyan] Changwon City in Gyeongnam held a briefing session on the verification of the financial feasibility of the Changwon Cultural Complex Town project at the Standing Committee on Economic Welfare and Women of the Changwon City Council on the 19th.

The briefing was held to resolve controversies over preferential treatment in Changwon City and to transparently disclose the scale of project profits.

The first verification was conducted by commissioning a domestic professional accounting firm.

As a result, based on tax invoices and account transaction details, the fund management and execution processes were reviewed, and the reality and reliability of 78% of the total project cost were confirmed.

Future expected profits considered discount rates on unsold commercial spaces ranging from 20% to 0%, investment in Changwon Cultural Complex Town content, internal construction, and other future expenses to review the final project financial feasibility.

The second verification checked for errors or distortions in the project financial feasibility report verified in the first phase and re-verified its validity using the same data.

The verification results estimated the final developer's project profitability at 5.4% to 6.7% after tax relative to sales.

Therefore, it was concluded that it would be difficult to exceed the appropriate profit margin (7.5%) promised by the city for community returns.

Members of the relevant standing committee commented, "It is fortunate that the scale of profits, which had remained suspicious, was transparently revealed through cross-verification by an external professional accounting firm."

A city official stated, "Since the scale and usage of project profits have been transparently disclosed, we will promptly complete the preparations necessary for the opening of the Changwon Cultural Complex Town."

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