Osan Unamtteul AI City and Gwangmyeong Cultural Complex Project to Resume

Osan Unamtteul AI City Urban Development Project Location Map

The Osan Unamtteul AI City and Gwangmyeong Cultural Complex projects in Gyeonggi Province are set to resume. These areas had been temporarily suspended due to amendments to the Urban Development Act aimed at preventing excessive profits by private entities.

On the 10th, Gyeonggi Province announced on the 11th that it had approved the first gateway agreement between public and private project operators for these two projects. Once the agreement is signed, the designation process for the urban development zone will proceed, followed by approval of the implementation plan and commencement of construction.

This public-private operator agreement follows the re-amendment of the Urban Development Act, which was revised in December 2021 and implemented in June 2022, but included a three-year grace period for enforcement starting July 2023. To benefit from this enforcement deferral, the project agreement approval and urban development zone designation procedures had to be completed by June 2025.

The 2021 amended Urban Development Act limits the profit rate of private participants in joint public-private urban development projects to prevent preferential treatment controversies, requiring that excess development profits be reinvested in infrastructure and other facilities. It also introduced regulations for the public recruitment process of private participants and mandated that agreements between public and private operators be approved by the provincial governor.

Gyeonggi Province actively supported the prompt realization of policy projects aimed at urban development and economic revitalization in these areas by establishing internal guidelines and completing consultations with the Ministry of Land, Infrastructure and Transport, despite the absence of detailed national guidelines on approving agreements between public and private operators to reasonably limit private participants' profits.

The Osan Unamtteul AI (Artificial Intelligence) City is a public-private joint project by Osan City and Hyundai Engineering, developing a 584,123㎡ complex in Osan-dong, Osan City, adjacent to Hwaseong Dongtan General Industrial Complex and Osan City Hall. The complex will include knowledge industry facilities, cultural and educational facilities, mixed commercial facilities, and residential facilities. The total project cost is 727.7 billion KRW. Osan City plans to strengthen the city's self-sufficiency by creating knowledge industry sites linked to Dongtan 2 District and Dongtan Industrial Complex, and to develop a landmark mixed-use residential and office complex tower near the Osan Interchange (IC) on the Gyeongbu Expressway.

The Gwangmyeong Cultural Complex is an open cultural complex developed by a public-private partnership between Gwangmyeong Urban Corporation and Hyundai Development Company, covering 549,120㎡ in Gahak-dong, Gwangmyeong City, adjacent to Gwangmyeong Siheung Technovalley and Gwangmyeong Cave. The total project cost is 824.2 billion KRW, focusing on providing convenience and infrastructure facilities around Gwangmyeong Cave and revitalizing the local economy. Gwangmyeong City plans to develop this area as a cultural hub representing the southwestern metropolitan area by linking Gwangmyeong Cave, Gwangmyeong Siheung Technovalley, and Gwangmyeong Siheung Public Housing District.

Lee Gye-sam, Director of the Urban Housing Office of Gyeonggi Province, stated, "The joint public-private urban development projects in cities and counties were delayed for a long time due to amendments in laws, causing delays in local development projects and inconveniences to residents due to compensation delays. We have actively reviewed and approved the agreements between public and private operators to resolve these issues early and ensure the urban development projects proceed swiftly."

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