Cancellation of Project Implementer Designation for Changwon City and Gyeongnam Development Corporation
The Busanjinhae Free Economic Zone Authority is seeking a new project implementer for the development project of Changwon-si Ungdong 1 District.
According to Gyeongnam Province, on the 30th, the Free Economic Zone Authority plans to cancel the designation of the current project implementers, Gyeongnam Development Corporation and Changwon City, and proceed with a public contest to designate a replacement project implementer.
The Ungdong District development project is a plan to create accommodation, leisure, and recreational facilities over an area of 2.25 million square meters in the Sudodong area of Jinhae-gu, Changwon-si.
Changwon City and Gyeongnam Development Corporation were designated as project implementers in September 2008 and initially signed an agreement with the private business Jinhae Ocean Resort in December 2009 to promote the project, with the agreement amended three times thereafter.
The original goal was to establish golf courses and hotels by 2015, and leisure, cultural facilities, and a sports park by 2018; however, after construction began in November 2013, progress stopped after the golf course was completed in December 2017, leaving the project stalled for 13 years.
Jinhae Ocean Resort obtained land use permission before the completion inspection for the completed golf course facilities and has been operating only the golf course through registration as a sports facility business, without advancing other projects such as accommodation, leisure cultural facilities, or sports and entertainment facilities.
In response, the Free Economic Zone Authority held a hearing on February 27 to cancel the designation of the project implementer for the Ungdong 1 District development project to resolve the long-term delay and normalize the project.
Following this, the cancellation was decided, announced in the Gyeongnam Province public notice on March 30, and posted on the Busanjinhae Free Economic Zone Authority website.
The stated reason for cancellation by the Authority is based on the grounds for cancellation of project implementer designation specified in Article 8-5, Paragraph 1 of the Special Act on Designation and Operation of Free Economic Zones.
▲ Failure to complete development within the project period due to the fault of the project implementer ▲ Failure to implement the execution plan without justifiable reasons ▲ Failure to comply with implementation orders without justifiable reasons.
An official from the Authority said, “We plan to announce the selection of a replacement project implementer through an open public contest as soon as possible,” adding, “We will prepare the contest guidelines to encourage participation from many investors and ensure that the selection process is conducted transparently and fairly.”
They also stated, “Above all, we will designate a solid replacement project implementer capable of promoting large-scale tourism projects such as hotels, resorts, conventions, and shopping centers with high added value and employment creation, and strive to promptly normalize the Ungdong 1 District development project.”
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