Busanjinhae Free Economic Zone Authority, Changwon City, and Gyeongnam Development Corporation Sign Agreement to Normalize Ungdong Zone 1 Development Project

On May 14, the Busanjinhae Free Economic Zone Authority (Commissioner Park Sungho), Changwon City (Acting Mayor Jang Geumyong), and Gyeongnam Development Corporation (President Kim Gwonsu) signed a tripartite agreement in the main conference room on the 5th floor of the Busanjinhae Free Economic Zone Authority to facilitate the smooth normalization of the Ungdong District (Zone 1) development project.

Agreement Ceremony for the Normalization of Ungdong District Development Project. (From left: Kim Gwonsu, President of Gyeongnam Development Corporation; Park Sungho, Commissioner of Busanjinhae Free Economic Zone Authority; Jang Geumyong, Acting Mayor of Changwon) Provided by Busanjinhae Free Economic Zone Authority

Previously, on March 17, the Free Economic Zone Authority announced the "Ungdong Zone 1 Normalization Promotion Plan" at the Gyeongnam Provincial Government Press Center. Subsequently, on March 27, it designated Gyeongnam Development Corporation as the new project developer, marking a turning point for the full-scale normalization of the project. To ensure stable project implementation and establish a cooperative framework among related organizations, the tripartite agreement was concluded, reflecting the opinions of Changwon City and the Gyeongnam Provincial Council.

This agreement aims to enable Gyeongnam Development Corporation, now designated as the sole developer for Ungdong Zone 1, to fully promote the normalization of the development project.

The main points of the agreement are as follows. First, regarding the settlement of existing projects, Changwon City and Gyeongnam Development Corporation will settle the confirmed investment costs for existing projects, such as the golf course, in accordance with the business agreement signed in 2017. The corporation plans to select a new private operator for the golf course, and the selected private operator will bear the costs related to the operation of the golf course.

Second, regarding the long-delayed future development plans, the corporation will construct the remaining infrastructure, establish development plans for land owned by the Fishermen's Cooperative and Changwon City, and guarantee the exercise of rights by landowners. Changwon City will cooperate with the corporation to fulfill its responsibilities and roles in amending the development plan for city-owned land and achieving the development objectives.

Third, to establish a project cooperation system, Gyeongnam Development Corporation will take the lead as the sole project developer, while Changwon City will actively cooperate in amending development and implementation plans and promoting follow-up projects to support the achievement of project goals.

Fourth, Changwon City will retain existing land ownership rights within the project site, while the Free Economic Zone Authority and the corporation will acknowledge these rights. With the signing of this agreement, all lawsuits filed against the Free Economic Zone Authority will be withdrawn.

Through this agreement, the participating organizations will faithfully implement the agreed terms and, based on mutual cooperation, will gradually promote the normalization of the Ungdong Zone 1 development project. Details not covered by the agreement will be promptly coordinated through separate consultations between Changwon City and Gyeongnam Development Corporation.

Park Sungho, Commissioner of the Free Economic Zone Authority, stated, "This agreement marks a significant turning point for the normalization of the long-delayed Ungdong Zone 1 development project. We will do our utmost to implement the project swiftly, based on mutual trust among the related organizations, and deliver tangible changes to the residents."

Jang Geumyong, Acting Mayor of Changwon, said, "Through this agreement, we have taken the first step toward project normalization by ending the long-standing litigation between administrative agencies. As Changwon City's land ownership rights are guaranteed, we will actively cooperate to ensure the smooth progress of the Ungdong Zone 1 development project."

Kim Gwonsu, President of Gyeongnam Development Corporation, commented, "Going forward, based on this agreement, our corporation will steadily implement the Ungdong Zone 1 development project to produce tangible results for the local community. We will work closely and responsibly with the Free Economic Zone Authority and Changwon City to address the remaining challenges. Through this, we aim to become a trusted public enterprise for the residents, going beyond mere project normalization."

On April 30, the Free Economic Zone Authority submitted a proposed amendment to the development plan to the Ministry of Trade, Industry and Energy, the approving authority, to extend the Ungdong Zone 1 project period from the original deadline of 2022 to 2032. The plan is to complete the amendment process by September this year, following administrative procedures such as review by the Free Economic Zone Committee and consultations with related agencies.

To construct the remaining infrastructure such as roads, the corporation has secured a budget in April and is preparing to commission related services, including detailed design and ground surveys, amendments to the implementation plan for the exercise of rights by displaced fishermen, and the establishment of guidelines for selecting a golf course operator. The corporation is also accelerating project implementation by consulting with Changwon City to determine the confirmed investment costs with the previous project operator and to select a professional institution.