[Daechang-dong Aftermath] Growing Concerns Over Seongnam City's Baekhyeon MICE Project as 'Second Daechang-dong'

The proposal to promote the Bundang Baekhyeon MICE urban development project, designed in a manner similar to the Daejang-dong development in Seongnam City, passed the Standing Committee of the Seongnam City Council amid opposition from the opposition party. Although opposition council members requested a suspension of the project, citing concerns that excessive profits might go to the private sector, the ruling party members, who hold the majority, processed it unilaterally, raising expectations of controversy.

According to the Seongnam City Council on the 1st, the Urban Construction Committee of the council approved the "Baekhyeon MICE Urban Development Project Other Corporation Investment and Promotion Plan" submitted by the city the day before. The agenda was handled solely by the Democratic Party of Korea after all members of the People Power Party walked out. The Urban Construction Committee consists of five Democratic Party members and four People Power Party members.

The Baekhyeon MICE urban development project is a plan to invest 2.7207 trillion KRW to create a MICE (Meetings, Incentives, Conferences, and Exhibitions) industry complex on 206,350 square meters of land designated for urbanization in Jeongja-dong 1 area, Bundang-gu. It will be carried out as a public development project similar to the Daejang-dong development. The special purpose corporation (SPC), formed as a public-private partnership, will have Seongnam Urban Development Corporation holding 50% plus one share, and private developers holding 50% minus one share. This structure is identical to that of the Daejang-dong project. The developer will invest profits gained from selling officetels and commercial facilities into exhibition convention facilities, parks, and other amenities.

Opposition council members are strongly opposing the project. Lee Sang-ho, a People Power Party council member, proposed suspending the project, stating, "Transparency in developer selection and profit distribution, which were problematic in Daejang-dong, must be improved." Another member from the same party, Lee Ki-in, said, "There is concern that companies like Hwacheon Daeyu might enter the Baekhyeon MICE project, turning it into a second Daejang-dong development. Measures such as disclosure of shareholder agreements, safeguards against excessive dividends, verification of asset trusts, and scrutiny of officials involved in developer selection must be established before agreeing to proceed."

Meanwhile, the final decision on the agenda will be made at the plenary session on the 12th of next month. Of the 34 total council members, 19 belong to the Democratic Party, so the likelihood of passage is currently high. If approved, the city plans to immediately call for private developers, select a preferred negotiation partner by January next year, and establish the SPC by April.

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