Gyeongnam Province: "Responsibility for Changwon-si Ungdong Project Clear, Appeal Should Be Abandoned"

Gyeongnam Province expressed regret over Changwon City's decision to appeal after losing the first trial and consequently losing its status as the developer of the Jinhae Ungdong 1 District development project, and urged the city to abandon the appeal.

On the 22nd, Gyeongnam Province stated in a press release, "Changwon City should give up the appeal, which has neither justification nor practical benefit."

Gyeongnam Provincial Government. Photo by Se-ryeong Lee

The province pointed out, "It was clearly revealed that Changwon City was at fault in the main lawsuit," and added, "The court ruled that the Busan Free Economic Zone Authority's (BFEZA) disposition was lawful, emphasizing public interest, and that the disadvantages expected by Changwon City cannot be considered greater than the public interest."

"The city neglected its responsibilities and duties as the developer, causing delays and cancellation of the developer designation, yet it ignored project normalization and tried to resolve the issue solely through litigation," it also stated.

It further criticized, "The one year and six months of legal battles prevented proper utilization of the property of residents of the province and Changwon citizens, exacerbating social confusion and conflict."

Then, it urged once again to abandon the appeal, saying, "Changwon City must take responsibility for the mental and economic damages suffered by Gyeongnam residents and Changwon citizens due to the appeal. Delaying project normalization by filing an appeal is disrespectful to the residents of the province and Changwon citizens."

Kim Sang-won, Director of the Economic Enterprise Division, said, "We will carefully review the future project promotion methods to prevent recurrence of similar incidents and find the optimal solution," adding, "We will do our best to ensure the rapid normalization of the Ungdong 1 District development project."

Development site of Ungdong 1 District project, Jinhae-gu, Changwon-si, Gyeongnam. Provided by Changwon Special City

The Ungdong 1 District development project, led by the private developer Jinhae Ocean Resort, planned to build accommodation, leisure, and recreational facilities over an area of 2.25 million square meters in Sudodong, Jinhae-gu, Changwon City. However, after construction began in November 2013, only a golf course was completed by December 2017, and the project has been stalled for several years.

The Busan Free Economic Zone Authority, which has the authority to approve the project implementation plan, issued six enforcement orders to the joint developers, Gyeongnam Development Corporation and Changwon City, to resume the remaining project, but these were not carried out. Ultimately, on March 30 of last year, the authority canceled the developer designations of the Development Corporation and Changwon City, judging them responsible for the project delay.

Changwon City filed a lawsuit in May of the same year, claiming the BFEZA's disposition was unfair. Although it lost the first trial held on the 7th at the Busan District Court's 1st Administrative Division, it decided to submit an appeal on the last day of the appeal period.