Local Government-Private Sector Longstanding Conflict, Government Directly Mediates

Emergency Economic Ministers' Meeting and Export Investment Countermeasures Meeting on the 8th

The government will directly mediate investment project disputes between the public sector and private businesses. As construction investment projects are being delayed due to public-private conflicts, the government plans to prepare adjustment measures to pave the way for the normalization of investment projects.

Bird's-eye view of K-Culture Valley

On the 8th, the government held an emergency economic ministers' meeting combined with an export investment countermeasures meeting and finalized and announced the "Support Measures for the Operation of Corporate Investment Projects" containing these details. The core of this plan is that when conflicts arise in projects commissioned by local governments or public institutions and undertaken by private companies, the state will prepare adjustment measures on their behalf. A total of 34 projects worth 20 trillion won have been submitted for adjustment.

The background for the government’s preparation of this plan includes the high-interest rate trend and rising construction material costs. In particular, private companies have often requested changes to project plans due to increased burdens, but local governments or public enterprises frequently rejected these requests out of concern for allegations of preferential treatment, audits, or breach of trust. Most of the 34 projects selected for support are those where the parties involved find it difficult to resolve disputes on their own.

Accordingly, the government will officially launch the "Public-Private Joint Construction Investment Project Adjustment Committee" with fairness. The committee will be composed of about 15 members and chaired by the 1st Vice Minister of the Ministry of Land, Infrastructure and Transport. Incentives will also be provided for participation in the adjustment process. For local governments and public institutions worried about audits or breach of trust, the Board of Audit and Inspection will provide pre-consulting, and experts such as lawyers and appraisers will be utilized to prepare reasonable and effective adjustment measures.

Among the projects, about 15 are expected to complete adjustments within this month. For the K-Culture Valley development promoted by Goyang City, Gyeonggi Province, the government will propose an adjustment plan focusing on changes to the project plan and schedule due to disruptions caused by power supply issues. In the Incheon Geomdan New Town development project, where opinions are sharply divided between expanding officetels and reducing development facilities, the government will prepare a reasonable adjustment plan including measures to expand corporate public contributions.

The remaining 19 projects will have adjustment plans prepared as early as next month or as late as early next year. Support will be provided in various ways for restoration costs to be paid during industrial complex greenbelt restoration projects, and if the burden of corporate public contributions increases, consultation on the burden of public contributions will be supported to ensure the swift commencement of projects.

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