Court Rules in Favor of Changwon City in "Losses Caused by Cancellation of Ungdong District Project Operator" Case

Mayor Hong Nampyo: "Prepare Normalization Measures and Prepare for Main Lawsuit"

Amid ongoing legal disputes between the Busan-Jinhae Free Economic Zone Authority and Changwon City over the development project of the Ungdong 1 District in Jinhae, Changwon Special City, Gyeongnam, the appellate court overturned the first-instance ruling and ruled in favor of Changwon City on the 13th.

According to Changwon City on the 14th, the 1st Administrative Division of the Busan High Court granted the suspension of the execution of the cancellation of the designation of the project implementer for the Ungdong 1 District development project, which Changwon City applied for on July 13.

A bird's-eye view of the development project in Ungdong 1 District, Jinhae-gu, Changwon-si, Gyeongnam. [Image provided by Changwon Special City Hall]

The appellate court stated, "It is appropriate to provide Changwon City with an opportunity to dispute the legality of the cancellation of the project implementer designation in the main lawsuit," and added, "It is reasonable to consider that the authority’s disposition causes tangible and intangible damages that are difficult or extremely difficult to endure with monetary compensation alone."

Furthermore, the court said, "There is no other appropriate way to prevent damage except to suspend the effect of this disposition," and "The effect is suspended until 30 days after the judgment date of the main lawsuit on the cancellation of the project implementer designation," thereby overturning the first-instance court’s dismissal decision.

Mayor Hong Nampyo stated, "We will actively cooperate with related agencies to prepare measures to normalize the Ungdong 1 District development project while also preparing for the main lawsuit."

Previously, Changwon City filed a lawsuit claiming that the cancellation of the designation of the project implementer and the cancellation of land use permission before the completion inspection by the Free Economic Zone Authority were unjust. However, the first-instance court dismissed both the cancellation of disposition and provisional injunction lawsuits filed by Changwon City.

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