Considering Public Interest, Expertise, and Accountability with 15 Similar Project Experiences Including Nammun District
Project Period Extension and Development Plan Amendment by September 2025,
Upper-Level Development to Begin in the Second Half of 2029
Busan-Jinhae Free Economic Zone Authority (Commissioner Park Sungho) announced on the 27th that Gyeongnam Development Corporation has been newly designated as the sole developer for the Ungdong District (Zone 1) development project.
Sungho Park (center), head of the Busanjin-Hae Economic Free Zone Authority, is giving a briefing on the "Normalization of the Ungdong 1 District Development Project" at the Gyeongnam Provincial Government Press Center on the 17th. (Left: Kwonsoo Kim, president of Gyeongnam Development Corporation. Right: Dongsik Heo, head of the Development Division at the Busanjin-Hae Economic Free Zone Authority) Provided by Busanjin-Hae Economic Free Zone Authority
This measure aims to normalize the development of Ungdong Zone 1, which has been stalled for a long period after only a golf course was developed and operated since 2017, despite Changwon City and Gyeongnam Development Corporation being designated as joint developers in 2008. On the 17th, the Authority held a press conference at the Gyeongnam Provincial Government Press Center to announce the designation of Gyeongnam Development Corporation as the new sole developer and unveiled the 'Ungdong Zone 1 Normalization Promotion Plan' to kick-start follow-up development.
Following this, Gyeongnam Development Corporation submitted an application for designation as the replacement developer to the Authority on the 24th after a board resolution. The Authority comprehensively reviewed legal qualifications, project execution capability, and financial soundness before granting final approval for the designation.
The Authority stated, "Gyeongnam Development Corporation is a local public corporation established under the Local Public Enterprises Act, and qualifies as a developer under the Special Act on Designation and Operation of Free Economic Zones. The corporation has experience in 15 similar projects, including the Nammun District of the Busan-Jinhae Free Economic Zone (2006-2014), and maintains a sound financial structure with a debt ratio of 194.7% as of March 31, 2025 (below the Ministry of the Interior and Safety guideline of 300%)." The Authority added, "It is an appropriate developer with public interest, expertise, and accountability."
With this designation, Gyeongnam Development Corporation will succeed the status of the previous developer and secure the legal standing necessary for full-scale project implementation, including future development plan and execution plan changes, administrative approvals, and development procedures.
Going forward, in line with the normalization plan announced on the 17th, the Authority and Gyeongnam Development Corporation plan to: ▲ complete the process of amending the development (execution) plan to reflect an extension of the project period by September this year, reviving the plan that expired in 2022; ▲ complete the remaining infrastructure such as roads; ▲ subdivide the district to secure ownership of livelihood support sites for displaced fishermen; ▲ establish plans for the use and upper-level development of remaining land; and ▲ commence upper-level development in the second half of 2029.
Commissioner Park Sungho stated, "Ungdong Zone 1 is a region where development has been delayed for a long time due to decision-making confusion between Changwon City and Gyeongnam Development Corporation, resulting in accumulated damages to local residents. With the designation of a sole developer, we will establish a responsible and prompt decision-making and execution system to steadfastly pursue the normalization plan for Ungdong Zone 1."
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