Proposal to Convert Jinhae New Port Hinterland into Logistics Complex
The Gyeongnam Citizens' Sovereignty Union (formerly Changwon Citizens' Coalition for Economic Justice) has demanded that Changwon City withdraw its lawsuit related to the development project of Ungdong District 1 in Jinhae.
On the 13th, the Gyeongnam Citizens' Sovereignty Union held a press conference at the Changwon City Hall Press Center, urging, "Changwon City should withdraw the lawsuit filed in protest against the cancellation of the Ungdong District 1 development project operator designation by the Busan-Jinhae Free Economic Zone Authority and conduct a comprehensive re-examination of the project."
Jung Sisik, Standing Representative of the Gyeongnam Citizens' Sovereignty Alliance, is holding a press conference related to the Jinhae Ungdong 1 District Development Project at the Changwon City Hall Press Center. [Photo by Lee Seryeong]
The Citizens' Sovereignty Union claimed, "Proceeding with the lawsuit in opposition to the FEZ Authority's action creates a huge financial burden and brings no benefit to the citizens," adding, "It is a lawsuit with no legitimacy, solely for the benefit of the project operator."
They further stated, "There are more lawyers representing Jinhae Ocean Resort, the auxiliary party to the lawsuit, than for Changwon City, the plaintiff, which makes this lawsuit appear to be for the benefit of the project operator. The lawsuit should be immediately withdrawn, and ties with Jinhae Ocean Resort should be severed."
They continued, "The private operator, Jinhae Ocean Resort, completed only the golf course in 2017 and has not constructed any other facilities," pointing out, "This is a typical case of private development for profit only, where the operator registered the golf course promising early completion but has only profited from its operation."
They emphasized, "The financial status of Jinhae Ocean Resort has seriously deteriorated, with accumulated losses carried forward amounting to 41.3 billion won as of the end of 2023, resulting in complete capital erosion. Given this financial situation, the likelihood of further development or investment is very low, so a thorough re-examination is necessary."
They also stated, "A livelihood support site promised to the fishermen who lost their fishing rights due to the development project must be provided, and the land lease fees owed to them must be paid."
"From 2009 to 2021, the fishermen who lost their rights did not establish a representative body. Therefore, Changwon City received the land lease fees from the private operator on behalf of the fishermen, but in 2021, the operator reclaimed the funds," they said. "Jinhae Ocean Resort must immediately pay the unpaid lease fees of about 1.7 billion won to the fishermen since 2009."
The Union demanded, "Gyeongnam Development Corporation and Changwon City should terminate the agreement with Jinhae Ocean Resort, select an alternative project operator through a public contest, and thoroughly re-examine the project," adding, "Jinhae Ocean Resort must not be allowed to further delay the project or harm the city's interests."
They also suggested, "The Ungdong District site is optimal as a hinterland for Jinhae New Port," and proposed, "For the development of Changwon City, the current project should be abolished and the site converted into a logistics and industrial complex to drive the growth of Gyeongnam and Changwon."
Development site of Ungdong 1 District, Jinhae, Changwon-si, Gyeongnam. Photo by Changwon Special City Hall
Previously, Changwon City stated, "The ongoing lawsuit is intended to minimize damage to Changwon citizens resulting from an administrative action that may be illegal," adding, "Given the 15-year project duration and the fact that 70% of the project is complete, it is necessary to clearly determine the responsibility and degree of fault for project delays among all related agencies."
The city expressed its intention to continue the lawsuit, saying, "If we do not challenge the cancellation of the project operator designation and simply accept it, the city will have to bear all the consequences of project disruption, and the resulting damage will inevitably fall on the citizens."
Regarding the livelihood support site for the fishermen who lost their rights, the city said this was a matter decided by the FEZ Authority, which has the authority to approve the project.
On this day as well, Changwon City stated in a press release, "The lawsuit filed by Changwon City against the unilateral administrative action by the FEZ Authority is a legitimate action under the relevant law," adding, "The demand by some organizations to withdraw the lawsuit may appear to represent only the position of the FEZ Authority."
The Ungdong District 1 development project in Jinhae is a project to establish accommodation, leisure, and resort facilities on a 2.25 million square meter site in Sudodong, Jinhae-gu, Changwon City. Construction began in November 2013, but only the golf course was completed in December 2017, and the project has since stalled.
The FEZ Authority determined that Changwon City and Gyeongnam Development Corporation, as joint project operators, were responsible for the prolonged delay and, on March 30 last year, canceled the designation of the project operator and revoked the pre-completion land use permit.
Changwon City, claiming the FEZ Authority's action was unfair, filed a lawsuit in May of that year and, in July, also filed for an injunction to suspend the cancellation of the project operator designation.
Unlike the first trial, the appellate court ruled that the effect of the FEZ Authority's revocation of the project operator qualification should be suspended for 30 days from the date of the main judgment. As a result, Changwon City is currently maintaining its project operator status while the lawsuit continues.
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