Guri City: "Galmae Hubel Nine Knowledge Industry Center Dispute Is a Civil Matter... Not Neglect of Duty"

Guri City: "A Civil Matter to Be Resolved Between Galmae PFV and the Allottees' Committee"
City Directly Refutes, Saying "Currently Under Litigation... Administrative Intervention Not Possible"
States, "Will Review Possible Administrative Actions After Final Court Ruling"

Guri City in Gyeonggi Province (Mayor Baek Kyunghyeon) has directly refuted allegations of "neglect of duty" regarding the recent controversy over the "Guri Galmae Hubel Nine Knowledge Industry Center," stating that the dispute between the developer and the allottees is a civil matter that must be resolved through legal means.

Guri City Hall exterior. Provided by Guri City

On January 7, Guri City issued an official statement regarding media reports about the city's alleged "neglect of duty," asserting that these reports are "not true." The city explained that the reports were based solely on the claims of the victims' countermeasures committee and distorted the legal scope of authority of the administrative body.

Regarding the corrective order against the developer (Galmae PFV) demanded by the committee, Guri City clarified that "this is a civil dispute between the allottees and the developer, and a lawsuit is currently underway." In accordance with the "Act on the Handling of Civil Petitions," the city emphasized that it is difficult for the administrative authority to make an independent decision or take action on matters currently under litigation. In other words, there are limits to administrative intervention until a final court ruling is made.

The Hubel Nine Knowledge Industry Center is a private-led development project approved in December 2020 during former Mayor Ahn Seungnam's term, with Guri Urban Corporation participating with a 10% stake through a project financing vehicle (PFV) structure. The knowledge industry center market saw a nationwide surge in supply in 2021 and 2022 amid a real estate boom and low interest rates. However, since 2023, the market has experienced an overall downturn due to declining demand.

The victims' countermeasures committee has claimed that Galmae PFV engaged in illegal activities and has called on the city to issue a corrective order. However, Guri City has stated that this is a civil dispute between the committee, which consists of allottees, and Galmae PFV, and that a related lawsuit is currently in progress. The city emphasized that this issue must be resolved through a court decision and falls outside the scope of administrative intervention.

Furthermore, regarding the committee's allegations of violations of the "Act on the Promotion of Industrial Clusters and Factory Establishment" (such as deceptive tenant recruitment and leasing or transferring to ineligible parties), Guri City explained that these issues are also directly related to the ongoing civil lawsuit. In accordance with Article 21, Clause 2 of the "Act on the Handling of Civil Petitions," the city stated that it is difficult for the administrative authority to take action or make judgments on matters under litigation. Therefore, administrative decisions can only be made after a final court ruling.

Additionally, regarding the further allegation of violation of the "Building Unit Sale Act," the city clarified that the building in question is a knowledge industry center under the "Act on the Promotion of Industrial Clusters and Factory Establishment," and according to Article 3, Clause 2, Item 2 of the "Building Unit Sale Act," it is not subject to the provisions of the Building Unit Sale Act. The city asserted that these related claims are also not factual.

Regarding allegations of violations of the Building Act and building equipment standards, Guri City stated, "The knowledge industry center in question is not required by law to install mechanical ventilation systems, and at the time of building permit and use approval, there were no plans for mechanical ventilation systems." The city declared that the committee's claims are not consistent with the facts.

A Guri City official stated, "We will continue to listen to the voices of the victims' countermeasures committee," but added, "Once the final court ruling is issued, we will carefully review possible administrative measures that the city can take in accordance with the outcome."