Changwon City Appeals Against Injunction Declaring Termination of Changwon SM Town Agreement Invalid

Gyeongnam Changwon Special City Hall. / Photo by Se-ryeong Lee ryeong@

[Asia Economy Yeongnam Reporting Headquarters Reporter Lee Seryeong] The conflict between Changwon Special City, Gyeongnam, and a private company over Changwon SM Town is deepening.

Changwon City plans to file an objection and appeal against the court's provisional injunction suspending the effect of the termination of the implementation agreement for the Changwon Cultural Complex Town, also known as Changwon SM Town.

Changwon SM Town is a public project promoted by former Mayor Ahn Sang-soo to attract SM Entertainment and revitalize cultural and tourism businesses such as K-POP in Changwon City.

After Mayor Ahn's retirement, the project lost momentum due to audits and verifications amid allegations of preferential treatment. Although the building was completed in April last year, in March this year, Changwon City notified the termination of the implementation agreement citing reasons such as refusal of facilities and construction by the project operator Changwon Artium City and some deficiencies in operational facilities.

The private operator Changwon Artium City opposed this and filed a lawsuit to invalidate the termination of the agreement. In July, the Changwon District Court approved a provisional injunction suspending the effect of the termination.

On the 21st, the city stated in a press release, “We will actively respond to Changwon Artium City's lawsuit to invalidate the termination of the Changwon Cultural Complex Town agreement,” and “We will file an objection and appeal the court's decision.”

They explained the reason for the appeal as, “Because responsibility must be held for the deliberate avoidance and delay of the project by the private operator Changwon Artium City, including refusal to construct facilities and equipment, exclusion of SM content as an operating participant, and only by correcting this can the Changwon Cultural Complex Town be returned to the citizens according to its original purpose and intent.”

According to the city, in July, the court pointed out in its decision to approve the provisional injunction suspending the effect of the termination that Changwon Artium City has the responsibility to prepare the necessary facilities and equipment for operation.

However, the court deferred judgment on the effectiveness of the detailed operation plan, which serves as the standard, and the responsibility for the delay until the main lawsuit.

A city official said, “We plan to do our best in the lawsuit by preparing explanations such as legal reviews and accurate fact-finding so that the court can make a correct judgment and protect public interest values.”

Regarding the company, the official emphasized, “If they have the will to normalize the project, they must first faithfully fulfill their obligations as shareholders of the operating corporation and according to the town operation plan, including internal facility and equipment construction, implementation of SM content facilities, fulfillment of the content investment contract with SM, and normalization of the operating corporation,” adding, “That alone will be the first step toward the project normalization demanded by the private operator.”

The city plans to review measures for normalizing the town project with related experts, institutions, and relevant departments while preparing the appeal.

A city official said, “We will do our best to restore the function of Changwon Cultural Complex Town as a K-POP cultural space and to operate it as originally intended.”

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