After Three and a Half Years of Challenges, Including the Daejang-dong Incident, District Designation and Plan Approval Secured
City: "Despite Hyundai Engineering's Suspension, No Delays or Halts in Follow-up Procedures"
A bird's-eye view of Osan Unamtteul AI City, where the designation of the urban development zone and approval of the development plan have been completed. Osan City plans to develop this area into a premium complex combining residential, commercial, and advanced industries. Provided by Osan City
On June 10, Lee Gwonjae, Mayor of Osan City, Gyeonggi Province, expressed his commitment to the steady progress of the 'Unamtteul AI City Urban Development Project,' which has received designation as an urban development zone and approval of its development plan.
On June 5, Mayor Lee stated, "We will develop Unamtteul AI City as a future industry hub and a premium complex where youth culture and advanced R&D converge." On this day, Gyeonggi Province approved the designation of the urban development zone and the development plan. This approval comes approximately three years and six months after Osan City applied for related approval from Gyeonggi Province in November 2021.
Unamtteul AI City is a core development project promoted by Osan City under the eighth popularly elected administration. The project aims to create a complex that combines residential, commercial, and advanced industrial facilities on a 584,123-square-meter site in the Osandong 166 area. Public entities, including Osan City, Korea Rural Community Corporation, Pyeongtaek Urban Corporation, and Suwon Urban Corporation, hold a 50.1% stake in the project, while private companies such as Hyundai Engineering, Korea Investment & Securities, and Mirae Asset Daewoo hold a 49.9% stake.
The project has faced various challenges during its progress. The delay in the project site was due to amendments to the Urban Development Act following the Daejang-dong incident. As a result, the project was unable to make progress for more than two years.
After the supplementary provisions of the Urban Development Act were amended in July 2023, the project began to regain momentum. The approval process included the Gyeonggi Province's approval of the project agreement in January last year, a public interest review by the Central Land Expropriation Committee, the submission of a metropolitan transportation improvement plan to the Metropolitan Area Transportation Committee in November last year, and the final resolution by the Gyeonggi Province Urban Planning Committee in May this year, culminating in the recent designation of the district and approval of the plan.
There are still uncertainties. One of the private sector participants, Hyundai Engineering, has put its participation on hold due to internal management reasons. In response, the city stated, "Hyundai Engineering's decision is based on a nationwide review, and there will be no delay or suspension of the overall project," adding, "We will proceed with subsequent procedures, such as implementation plan approval, without any setbacks."
The city plans to proceed with compensation negotiations in the second half of 2026 after obtaining approval for the implementation plan and aims to complete site development by 2028.
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