Promoting Improvements in Investment Attraction and Delayed Project Management for Tourism Facilities
Busan Urban Corporation (BMC, President Shin Changho) conducted a special audit from February to April 2025 regarding investment attraction for tourism facilities and the management of delayed projects within the Osiria Tourism Complex, and announced the results on the 16th.
This audit was carried out to address allegations of land speculation and preferential contracts raised in media reports concerning some tourism facilities within the Osiria Tourism Complex. The audit also aimed to expedite the revitalization of the tourism complex through thorough inspection and improvement of delayed development projects.
Busan Urban Corporation conducted a preliminary investigation of all 32 tourism facilities within the complex that had attracted investment. The corporation then selected 10 tourism facilities that were either yet to begin construction or were under construction at the time of the audit as the main focus. Over a period of seven weeks, the corporation intensively reviewed the overall aspects of contractor selection, implementation management, contract signing, and ownership transfer.
The audit found that the selection and management of developers for each tourism facility were carried out according to business agreements and land sales contracts based on the public offering guidelines and business proposals. It was confirmed that, as the conditions differed for each project, it was not possible to determine legality simply by comparing the facilities to one another.
In addition, after the full payment of the sale price, if there are disagreements between the contracting parties regarding the fulfillment of specific contract terms, legal review is essential. Depending on the circumstances, there is also a possibility that such disagreements could lead to legal disputes.
A BMC official stated that the issues related to 'Family Land' and 'Culture and Arts Town', which had been raised in the media, were handled appropriately in accordance with the business agreements and contract terms. The audit found no illegal or inappropriate business practices.
Through this audit, Busan Urban Corporation identified a total of four areas for improvement: strengthening management when there is a change of investors, revising financial soundness evaluation criteria for developers, improving the contract implementation and management system, and establishing measures to prevent project delays. The corporation plans to develop and implement effective improvement measures after further legal and institutional review.
A Busan Urban Corporation official said, "This audit will serve as an opportunity to restore trust in the Osiria Tourism Complex and to accelerate project progress," adding, "We will continue to strengthen our cooperation system with developers and devote all our efforts to revitalizing tourism facilities."
The Osiria Tourism Complex is a large-scale integrated tourism complex being developed in the Dongbusan area of Gijang-gun, Busan. It brings together a variety of tourism infrastructure including shopping, culture, theme parks, and hotels, and is attracting attention as a key project for revitalizing the local economy.
Busan Urban Corporation
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