Development Project of Ungdong 1 District Drifting for 13 Years... Gyeongnam Province "Will Make Efforts to Normalize Discussions by the End of This Year"

Kim Byung-kyu, Deputy Governor for Economic Affairs of Gyeongnam Province, is making a presentation regarding the operation of the council for the normalization of the Woongdong 1 District development project. / Photo by Ryeong Lee

[Asia Economy Yeongnam Reporting Headquarters Reporter Lee Se-ryeong] As the development of the Ungdong 1 District in the Busan-Jinhae Free Economic Zone has been stalled for 13 years, Gyeongnam Province is forming a task force to normalize the project and find solutions.

The Ungdong 1 District development project in Jinhae-gu, Changwon City, Gyeongnam, began in December 2009 when the project implementers, Changwon City and Gyeongnam Development Corporation, signed an agreement to establish Jinhae Ocean Resort along with a golf course, lodging facilities, and leisure cultural facilities in the area.

After construction started in November 2013, only the golf course was completed in December 2017. The lodging and leisure cultural facilities have been halted due to conflicts of opinion between the private business operators and the project implementers regarding project advancement.

Park Wan-su, Governor of Gyeongnam Province, stated in June during the governor transition team period, “To normalize the Ungdong 1 District development project, a consultative body consisting of the five participating parties must be formed to resolve the issues.”

On July 14, Gyeongnam Province formed a normalization consultative body led by the Vice Governor for Economic Affairs, holding two consultative meetings and three working-level meetings to propose normalization plans by each institution.

The consultative body includes Gyeongnam Province, Busan-Jinhae Free Economic Zone Authority, Changwon City, Gyeongnam Development Corporation, and Jinhae Ocean Resort.

On the 27th, Gyeongnam Province announced that through the meetings so far, the following normalization plans were proposed: ▲completion of the site in its current developed state excluding the golf course and infrastructure ▲adjustment of the private business operator’s project scope ▲extension of land usage period.

They added that solutions are needed to resolve differences in positions regarding allegations of preferential treatment for private business operators, achievement of project objectives, and extension of land usage periods.

Kim Byung-gyu, Vice Governor for Economic Affairs, said, “The Ungdong 1 District development project has faced various issues over a long period, and due to conflicting interests among institutions, it is not easy to come up with a normalization plan.”

“Through the ongoing consultative body, we will coordinate the plans proposed by each institution and, if necessary, Gyeongnam Province will present mediation proposals, making every effort to establish a normalization plan by the end of this year,” he added.

He further explained, “If no agreement is reached by the end of this year, the Busan-Jinhae Free Economic Zone Authority may cancel the designation of the project implementer, or the project implementer may consider various alternatives such as terminating the agreement with the private business operator.”

Vice Governor Kim emphasized, “We will keep the residents informed of the progress of the Ungdong 1 District development project normalization consultative body regularly to ensure fair and transparent operation.”

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