Namwon-si Decides to Sell 'Hyosan Condo'... Expectation for Regional Economic Revitalization

Published 21 Nov.2022 14:23(KST)

[Namwon=Asia Economy Honam Reporting Headquarters Reporter Jeong Young-kwon] Namwon City in Jeonbuk announced on the 21st that the sale of Namwon Hyosan Condo, which has been left as an eyesore in the city center for 17 years during the 8th term of the elected mayor, has been decided after conducting three rounds of public auctions starting from the 31st of last month, and a new owner has been found.

The city expects that the corporation, which was decided as the buyer, is investing in the construction industry in the Gwangju area, and that a large-scale investment will be made soon, greatly contributing to the improvement of the cityscape and revitalization of the local economy.

Since May 2008, more than 30 public auctions have been conducted to revitalize Hyosan Condo, but there were no bidders each time, resulting in continuous failures. As a result, the building has been abandoned as a derelict structure for 17 years, raising concerns about safety accidents and misuse for crimes, making urgent countermeasures necessary.

Mayor Choi Kyung-sik selected the revitalization of Hyosan Condo as a major agenda item for the 8th term from the transition committee stage, met several times with Jeollabuk-do Governor Kim Kwan-young to propose changing its use to other purposes such as nursing facilities, received positive responses, and ordered all possible administrative support from related departments.

Accordingly, this public auction was re-initiated by highlighting the advantages of purchasing Hyosan Condo, which had been suspended due to failed auctions, and preparing administrative support measures such as changing the zoning area.

The first auction started at 3,417,600,000 KRW on the 31st of last month, and as a result of the third bid opening on the 17th, the winning bid was 2,738,000,000 KRW. After confirming the absence of disqualifications for the winning bidder on the same day, the final sale was decided, marking a turning point for recovery.

The current winning bidder has paid a deposit of 273,800,000 KRW, which is 10% of the winning bid, and the remaining balance must be paid by January 2nd of next year.

There were cases in 2015 and 2016 where sales were decided but canceled due to non-payment of the balance, so the city plans to actively support the investor administratively if the balance payment is completed.

Mayor Choi Kyung-sik said, “We will definitely succeed in selling Hyosan Condo to revitalize the local economy and tourism,” and added, “We will spare no administrative support possible, including zoning changes and extensions of design and service periods.”

Meanwhile, Hyosan Condo, which received usage approval in 1991, functioned as a representative tourist accommodation in Namwon, but due to the economic downturn and local tax arrears caused by the bankruptcy of its parent company, its tourist accommodation license was canceled in 2005. It has been abandoned for over 17 years without finding a new owner, severely damaging the urban landscape.