[Asia Economy Reporter Lee Seung-jin] The Board of Audit and Inspection has sided with Harim Industrial in the conflict between Seoul City and Harim Industrial over the development of the urban high-tech logistics complex in Seocho-gu, Seoul. Harim plans to actively proceed with the development project as originally planned.
On the 18th, Harim stated in a press release, "The Board of Audit and Inspection's 'institutional caution' disposition against Seoul City regarding the delay in permits for the Yangjae Urban High-Tech Logistics Complex clarifies the right and wrong of Seoul City's framing of legally stipulated incentives (permit procedures, floor area ratio, public contributions) as 'special favors'."
They continued, "The Yangjae Urban High-Tech Logistics Complex development project, which includes 30% logistics facilities and 40% research and development (R&D) facilities, is a project that cannot expect development profits even when applying the maximum floor area ratio (800%). However, since the urban high-tech logistics complex is an essential urban infrastructure urgently needed to resolve various urban problems caused by the surge in living logistics and to enhance Seoul City's urban competitiveness in the digital economy era, we will actively proceed based on the six basic concepts previously announced and in accordance with relevant laws and procedures," they emphasized.
Earlier, Harim raised the issue that despite the Ministry of Land, Infrastructure and Transport selecting the site as an urban high-tech logistics complex (pilot complex) and reflecting it in the national plan, Seoul City delayed permits by refusing to negotiate the letter of intent, insisting that it should be developed centered on R&D. Harim filed a public interest audit request.
The Board of Audit and Inspection conducted an audit on the appropriateness of Seoul City's handling of the Yangjae urban high-tech logistics complex development following the public interest audit request and disclosed the results on this day.
The audit revealed that Seoul City had been promoting a plan to develop the area as an R&D hub since October 2015. The problem arose when Harim Industrial submitted an application to Seoul City in April of the following year to develop the former Yangjae cargo terminal site as an urban high-tech logistics complex, which the Ministry of Land, Infrastructure and Transport was promoting as a pilot complex. Seoul City, claiming it did not align with the R&D hub development plan, submitted the application to the Ministry without internal procedures.
After belatedly recognizing the issue, Seoul City's related departments requested the urban high-tech logistics complex department to withdraw the application to the Ministry of Land, Infrastructure and Transport, but this was not accepted. Ultimately, the Ministry selected the site as a pilot urban high-tech logistics complex in June 2016.
Regarding this, the Board of Audit and Inspection stated, "When handling permits for the creation of high-tech logistics complexes, ensure that there is no omission of prior coordination between departments, and if legal grounds are required, secure them before processing. When a policy direction is set, ensure that there is no confusion in policy implementation by reversing it without reasonable grounds, and thoroughly manage related tasks," urging caution.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
