Goyang City: "Ilsan Urban Regeneration Delay Due to LH's Design Error and Unilateral Cancellation"

City Refutes Kim Haeryeon’s “200 Billion Won Urban Regeneration Loss Crisis” Claim
City Criticizes LH for Unilaterally Canceling Agreements Between Public Institutions and Local Governments
Goyang to Continue Discussions with LH and Proceed with City-Managed Public Buildings as Planned

Goyang Special City in Gyeonggi Province (Mayor Lee Donghwan) issued an official statement on the 21st regarding the “200 billion won Ilsan Urban Regeneration Loss Crisis” raised by City Councilor Kim Haeryeon, saying, “Despite LH’s suggestion to cancel the Happy Housing construction plan, Goyang City will continue to proceed as planned with the public building portion of the Ilsan Complex Community project, which is funded by national and provincial government funds and is under the city’s responsibility.” The city further stated, “The claim of a 200 billion won fiscal loss, including national and provincial funding, is not true.”

A view of Goyang Special City Hall. Provided by Goyang Special City.

According to the city on the 22nd, LH, the main party responsible for constructing Happy Housing, stated around August 2025, when discussing the project direction with the Ministry of Land, Infrastructure and Transport and Goyang City, that although the project did not meet the criteria for launching Happy Housing, they would ensure there were no setbacks and aimed to break ground in the first half of 2026. However, by September 2025, LH demanded compensation for a 9 billion won loss in Happy Housing construction costs and indicated that, if not reflected, they would cancel the Happy Housing project.

Considering that the Ilsan Complex Community and Happy Housing are joint projects between Goyang City and LH, selected for the Urban Regeneration New Deal as public institution proposals by LH, LH’s unilateral intention to cancel the project due to business losses is deemed highly irresponsible. The city stated that it is now necessary to discuss the damages Goyang City may incur from such a unilateral project cancellation.

Despite these circumstances, City Councilor Kim Haeryeon’s assertion that the construction halt is entirely due to Goyang City’s fault and that the city should bear all responsibility is an excessive claim, according to the city’s position.

Regarding Kim Haeryeon’s claim that the mayor requested a change in the use of Happy Housing to commercial facilities, the city clarified, “There is no such fact; this is a misunderstanding.” However, as infrastructure (such as road width and water and sewage facilities) in the Ilsan Station area had not been expanded, and with the prior establishment of the Urban Sky mixed-use building (552 residential units, 225 officetel units, and 139 commercial units) before the 8th popularly elected administration, Goyang City requested LH to reconsider the use of Happy Housing, considering the congestion in the Ilsan Station area and the need to expand welfare for young people. This request was not accepted by LH for various reasons, including concerns about reduced project feasibility.

The city further explained that the project delay was not due to passive administration by Goyang City, but rather to unclear responsibility between LH and Goyang City for verifying underground structures for the soundproof wall foundation, as well as differing expert opinions and legal interpretations regarding the safety of the structure. Therefore, the claim that the city made a blanket decision to put the project on hold due to “low land efficiency” presents only one aspect of the issue without addressing the overall context.

In particular, the main reasons for the project delay were a construction halt and contract termination due to interference with the railway soundproof wall foundation, and a design error during LH’s planning phase, where a reverse T-shaped retaining wall was mistaken for an L-shaped retaining wall at the stage of ground investigation and facility foundation consultation.

Goyang City stated that the issue of responsibility for the project delay and unilateral project withdrawal should be discussed after the termination of the project agreement with LH, and that they have already consulted with LH on this matter. Despite these reasons, Goyang City announced it would extend the project period and, in 2026, proceed with the urban regeneration project as planned, implementing the public building portion alone, excluding Happy Housing and the public health center.