Changwon-si Ungdong 1 District Project Implementer Maintained... Gyeongja Agency's Re-Appeal Dismissed

Changwon Special City in Gyeongnam, which had its designation as the developer for the Ungdong 1 District development project canceled by the Busanjin-Hae Economic Free Zone Authority, will maintain its status as the project developer for a while longer.

Changwon City announced on the 15th that the Supreme Court's 3rd Division dismissed without oral argument the appeal for suspension of execution against the cancellation of the developer designation for the Ungdong District development project, which the Economic Free Zone Authority had filed on September 17.

According to the city, dismissal without oral argument is a system where the Supreme Court rejects an appeal without holding a hearing if it determines the appeal has no grounds.

The Ungdong District development project is a plan to create accommodation, leisure, and recreational facilities over an area of 2.25 million square meters in the Sudodong area of Jinhae-gu, Changwon City.

Originally, the goal was to establish golf courses and hotels by 2015, and leisure, cultural facilities, and a sports park by 2018; however, after construction began in November 2013, progress halted in December 2017 with only the golf course completed.

The Economic Free Zone Authority found that Changwon City and Gyeongnam Development Corporation, as joint project implementers, were responsible for the long delay in the project and, pursuant to the Special Act on Designation and Operation of Economic Free Zones, issued orders to cancel the developer designation and revoke permission to use land before the completion inspection.

Changwon Special City Hall, Gyeongnam.
Photo by Lee Seryeong

Changwon City filed a lawsuit claiming the Authority's orders were unjust, but the first trial dismissed the case, while the appellate court ruled in favor of the city.

At that time, the appellate court stated, “It is appropriate to grant Changwon City the opportunity to dispute the legality of the cancellation of the developer designation in the main lawsuit,” and added, “It is reasonable to consider that the Authority’s orders cause tangible and intangible damages to Changwon City that are difficult or nearly impossible to endure with monetary compensation alone.”

The Economic Free Zone Authority immediately filed a further appeal, but it was dismissed, confirming the appellate court’s decision to grant suspension of execution.

Changwon City’s status as the project developer will be maintained for up to 30 days after the main lawsuit’s judgment, according to the appellate court’s ruling.

A city official said, “While preparing for the main lawsuit, we will continue consultations with related agencies to normalize the project.”

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