Changwon Special City, EFZ Authority, and Gyeongnam Development Corporation Move to Normalize Ungdong District 1 Development Project

EFZ Authority and Changwon City End Two-Year Lawsuit
Land Ownership of "Changwon Special City" Officially Recognized
Gyeongnam Development Corporation Secures Foundation
to Advance as Sole Developer and Accelerate Project Progress

Changwon Special City, the Busanjin-Hae Economic Free Zone Authority ("EFZ Authority"), and Gyeongnam Development Corporation signed a three-party agreement on May 14 in the main conference room on the fifth floor of the Busanjin-Hae Economic Free Zone Authority to facilitate the smooth normalization of the development project in Ungdong District 1.

Busanjin-Hae Economic Free Zone Authority, Changwon City, and Gyeongnam Development Corporation Sign Agreement to Normalize Development Project in Ungdong District 1.

Previously, on March 17, the EFZ Authority announced the "Ungdong District 1 Normalization Promotion Plan" at the Gyeongnam Provincial Government press center. On March 27, it designated Gyeongnam Development Corporation as the replacement developer, marking a turning point for the full-scale normalization of the project. To ensure stable progress and establish a cooperative framework among related organizations, the EFZ Authority reflected the opinions of Changwon City and the Gyeongnam Provincial Council in this three-party agreement.

This agreement aims to officially push forward the normalization of the Ungdong District 1 development project after Gyeongnam Development Corporation was designated as the sole developer for the district.

The main points of the agreement are as follows: ▲ Regarding the settlement of existing projects, Changwon City and Gyeongnam Development Corporation will settle confirmed investment costs for existing projects, such as the golf course, in accordance with the business agreement signed in 2017. The corporation will select a new private operator for the golf course, and this private operator will be responsible for operating the golf course and covering related costs. ▲ Regarding the long-delayed future development plans, the corporation will construct the remaining infrastructure and establish development plans for land owned by the fisheries cooperative and Changwon City, ensuring that landowners can exercise their rights. Changwon City will work with the corporation to revise development plans for city-owned land and fulfill its responsibilities and roles to achieve the development objectives. ▲ To establish a project cooperation system, Gyeongnam Development Corporation will lead the project as the sole developer, while Changwon City will actively cooperate in revising development and implementation plans and promoting follow-up projects to support the achievement of project goals. ▲ Changwon City will retain existing land ownership within the project site, and both the EFZ Authority and the corporation will acknowledge this. With the signing of this agreement, Changwon City has agreed to withdraw all lawsuits filed against the EFZ Authority.

Through this agreement, each organization plans to faithfully implement the terms and promote the normalization of the Ungdong District 1 development project in stages based on mutual cooperation. For matters not covered by the agreement, Changwon City and Gyeongnam Development Corporation will coordinate promptly through separate consultations.

Park Sungho, Commissioner of the EFZ Authority, stated, "This agreement marks a significant turning point for the normalization of the long-delayed Ungdong District 1 development project. We will do our utmost to promptly advance the project based on mutual trust among related organizations and deliver tangible changes to the residents."

Jang Geumyong, Acting Mayor of Changwon, said, "By ending the long-standing litigation between administrative agencies through this agreement, we have taken the first step toward project normalization. As Changwon City's land ownership is guaranteed, we will actively cooperate to ensure the smooth progress of the Ungdong District 1 development project."

Kim Kwonsu, President of Gyeongnam Development Corporation, stated, "Based on this agreement, our corporation will push forward the Ungdong District 1 development project without setbacks to deliver real results for the local community. We will also work closely with the EFZ Authority and Changwon City to responsibly resolve the remaining issues. Through these efforts, we aim to become a trusted public corporation for the residents, going beyond mere project normalization."

Meanwhile, on April 30, the EFZ Authority submitted a proposal to the Ministry of Trade, Industry and Energy, the approving agency, to extend the Ungdong District 1 project period from the original deadline of 2022 to 2032. The authority plans to complete the amendment of the development plan by September this year, following administrative procedures such as review by the Economic Free Zone Committee and consultations with related organizations.

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