- Developer TI Busan Co., Ltd. Reveals Economic Impact Study Results Including 800 Billion KRW per Second Production Induction Effect
- Expected to Serve as a Catalyst for Regional Economic Recovery... Permit Procedures Delayed by COVID-19 Likely to Accelerate
It has been investigated that if the site, which has been left abandoned like ruins for seven years since MiWorld, the only theme park in Busan city, closed, is developed, it could generate an economic ripple effect worth trillions of won.
According to the economic ripple effect report commissioned by TI Busan Co., Ltd., the developer of the ‘Old MiWorld’ site in Millak-dong, Suyeong-gu, Busan, to the Korea Institute for Industrial Economics and Trade in April, during the six years of development of the approximately 58,300m2 ‘Old MiWorld’ site, the production inducement effect is expected to reach about 1.8095 trillion won, the value-added inducement effect about 736.1 billion won, and the employment inducement effect about 9,865 people. Compared to Lotte World Tower in Jamsil, Seoul, although the site area of the complex facility is about 16%, the production inducement effect is about 41%.
Even after the development is completed, by operating residential lodging facilities and tourism commercial facilities within the complex, an annual expenditure of 66.4 billion won is expected, resulting in an annual production inducement effect of about 138 billion won, a value-added inducement effect of about 55.3 billion won, and an employment inducement effect of 1,445 people.
The scale of the ‘Old MiWorld’ site development project, as revealed by TI Busan, amounts to a total of 906.7 billion won, including about 897.5 billion won for the construction of the complex facility and about 9.7 billion won for land compensation and donation of Millak Amusement Park land. This corresponds to about 24% of the total construction cost of Lotte World Tower in Jamsil, Seoul.
A TI Busan official said, “Haeundae-gu across the Suyeong River has established the ‘Haeundae MICE (Meetings, Incentives, Conferences, and Exhibitions) Belt’ connecting Centum City, Marine City, and LCT, but Suyeong-gu has no landmark to boast of in comparison,” adding, “If the site is properly developed, it will serve as a link connecting Haeundae’s tourism infrastructure with Suyeong-gu in terms of location.”
The ‘Old MiWorld’ site had been treated as an obstacle to regional development, causing frowns among tourists visiting the Millak Waterfront Park area and complaints from local merchants, as the surrounding area became slum-like due to sluggish development.
However, since Busan City selected a new project developer at the end of February, expectations have begun to rise in the local community that development, which had drifted for over ten years, will restart. Although the landscape review scheduled for March was delayed due to the COVID-19 impact and there were conflicts over retention rights, the landscape review is scheduled for the 23rd of this month, and the retention rights conflict was reportedly resolved at the end of last month.
A TI Busan official said, “Rather than engaging in prolonged legal battles over retention rights, we made a magnanimous decision to listen to voices hoping for the prompt start of construction to help the local economy struggling due to the COVID-19 crisis and to promote coexistence with local construction companies.”
In fact, on the 20th of last month, about 40 restaurant owners in Millak-dong submitted a collective petition to Suyeong-gu Office, stating that the ruined site’s surrounding environment and retention rights conflicts were making it difficult for tourists and residents to pass through and were hindering business, urging administrative guidance to ensure proper cleanup and construction progress.
Related agencies such as Busan City and Suyeong-gu Office are expected to actively provide administrative support in response to voices from the economic sector, including local construction companies, calling for simplification of permit procedures and active support for private park and amusement park development projects.
A TI Busan official said, “Following the landscape review, we hope that the subsequent permit schedules, including building review, will proceed swiftly so that construction can start as soon as possible,” adding, “From the moment construction begins, we will strive to serve as a catalyst for the local economy struggling due to the COVID-19 crisis.”
He also added, “We will sincerely engage in consultations regarding complaints from residents of apartments around MiWorld to minimize their inconvenience and ensure that the project contributes to regional development and the increase in surrounding property values.”
Through landmark development, expectations in the local community are likely to grow that the Millak Waterfront Park and amusement park area, known as Suyeong-gu’s top tourist destination, will be completely transformed.
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