Daejeon Yuseong Complex Terminal Project Stalled... Urban Corporation to Announce Normalization Plan Next Month

Perspective view of Yuseong Complex Terminal. Provided by Daejeon City

[Asia Economy (Daejeon) Reporter Jeong Il-woong] The Daejeon Yuseong Complex Terminal development project has ultimately collapsed. This is because the private developer KPIH failed to meet the project promotion conditions within the set deadline.

According to Daejeon City and Daejeon Urban Corporation on the 19th, the Urban Corporation and KPIH amended and signed the project agreement in June, setting the deadline for the land sale contract as the 18th of this month and the construction start deadline as the 18th of next month.

According to the amended agreement, KPIH was required to complete project financing (PF) and the land sale contract by the 18th of this month and start construction by the 18th of next month.

However, since KPIH failed to execute the first hurdle of PF and land sale contract signing, the private developer-led Yuseong Complex Terminal development project has effectively collapsed.

The amended agreement allowed for the termination of the Yuseong Complex Terminal project contract (revocation of developer status) if KPIH failed to achieve PF and execute the land sale contract within the set deadline.

Practically, the deadline for PF achievement and land sale contract on the previous day was KPIH’s last chance to properly advance the Yuseong Complex Terminal project.

The Urban Corporation has already formalized the termination of the project agreement with KPIH and is reportedly planning to send a certified letter notifying KPIH of the termination as early as the 21st.

An official from the Urban Corporation said, "The city and the Urban Corporation have made efforts to support the success of the project by extending the PF and land sale contract period for KPIH. However, we regret that the advancement of the long-awaited regional project, the Yuseong Complex Terminal development, has been halted."

He added, "The Urban Corporation plans to consult with the city to decide on the development method for the Yuseong Complex Terminal as soon as possible and announce measures to normalize the project within next month."

Meanwhile, the Yuseong Complex Terminal development project is planned to be carried out on a 102,080㎡ site in the Guam-dong area of Yuseong, including a complex passenger terminal building, BRT transfer center and transfer parking lot, officetels, and happy housing. The estimated total project cost is 790 billion KRW.

Previously, this project had repeatedly failed despite selecting developers through four rounds of public bidding in 2011, 2013, and 2018 after initially soliciting private developers in 2010 before KPIH obtained the private developer status (preferred negotiator). Since 2010, all four attempts at private development have failed.