Changwon City Announces Legal Action in Response to Cancellation of Woongdong 1 District Project Operator

"We will respond actively with extraordinary determination to maintain the status of the project operator for the Woongdong 1 District development project."

Changwon City, Gyeongnam Special City, on the 30th, announced legal action, calling the Busanjinhae Free Economic Zone Authority's cancellation of the designation of the project operator for the Jinhae Woongdong 1 District development project "unjust."

Earlier, the Free Economic Zone Authority explained that it canceled the designation of Changwon City and Gyeongnam Development Corporation as project operators because they fell under the cases specified in Article 8-5, Paragraph 1 of the Special Act on Designation and Operation of Free Economic Zones, including ▲ failure to complete development within the project period due to the fault of the project operator ▲ failure to implement the execution plan without justifiable reason ▲ failure to comply with the implementation order without justifiable reason.

According to the city, at the end of last year, Gyeongnam Province, Changwon City, Gyeongnam Development Corporation, the Free Economic Zone Authority, and the private business operator Jinhae Ocean Resort formed a five-party consultative body to discuss measures to normalize the project but failed to find an appropriate consensus.

Accordingly, Gyeongnam Province announced that it would entrust the decision on the project direction to the Free Economic Zone Authority, which manages and supervises the project implementation, and the Authority began a hearing on February 27 to cancel the designation of the project operator.

Changwon Special City Hall, Gyeongnam.
Photo by Lee Seryeong

Before the hearing began, the city submitted a prior opinion statement raising the unfairness of the cancellation of the project operator designation, including efforts made so far to resolve conflicts with the joint project operator Gyeongnam Development Corporation and to promote the project normally, as well as difficulties in normal project promotion due to Gyeongnam Province’s push for a global theme park.

During the hearing process, the city expressed its determination to complete the remaining work as the project operator of the Woongdong 1 District development project, but the Free Economic Zone Authority ultimately decided to cancel the designation of the project operator.

A city official said, "If we lose the status of the project operator, we will have to sell the land currently owned to the replacement project operator at the cost of development, so the damage will inevitably be passed on to the citizens."

"Since Changwon City has done its best to normally promote the Woongdong 1 District development project, considering the seriousness of the project and its impact on the local community, we will take legal action to maintain the status of the project operator, including selecting a major law firm," he emphasized.

The city plans to secure the status of the project operator through legal action and discuss a sole project implementation system with the joint project operator, Gyeongnam Development Corporation.

At the same time, it plans to derive normalization measures regarding whether the private business operator will fulfill the remaining project obligations.

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