The development project for the Hyeondeok district in Pyeongtaek, which has been dormant for a long time, is expected to resume as the legal dispute with the private business is concluded and it is decided to be a public development. The Gyeonggi Free Economic Zone Authority announced on the 27th that it will select Gyeonggi Housing and Urban Corporation and Pyeongtaek Urban Corporation as joint project implementers and promote it in a 'public development' manner.

The Gyeonggi Free Economic Zone Authority designated Korea China Development Co., Ltd. as the project operator as a private development method in 2014, but the designation was canceled in 2018 due to non-investment of equity capital. Afterwards, in December 2020, the Daegu Bank Consortium was selected as the preferred negotiating party and a public-private joint development method was attempted, but the business agreement was terminated due to the private side's failure to submit a business agreement performance guarantee, and the preferred negotiating party's status was revoked. The private sector filed an administrative lawsuit, but in March of this year, the lawsuit was concluded with the plaintiff withdrawing the lawsuit, eliminating the obstacle to the project.

In the Hyeondeok district, the project was halted for about 16 years due to two private development failures, worsening the inconvenience in the lives of residents, and the need for public development was constantly raised due to aging infrastructure. In particular, amid the real estate recession, there was a growing demand for revitalizing the local economy through stable development.

The Gyeonggi Free Economic Zone Authority explained that it cooperated with related organizations such as Gyeonggi Province, Gyeonggi Housing and Urban Corporation, Pyeongtaek City, and Pyeongtaek Urban Corporation to form a normalization council and a working-level task force (TF) and decided on a public-led public development method after several discussions.

After completing administrative procedures, such as reviewing the feasibility of new investment projects in accordance with the Local Public Enterprises Act, follow-up procedures, such as designating a project operator, will be carried out. According to the current plan, compensation will begin sequentially from 2027, and corporate land supply is expected to be possible thereafter. The total project cost is expected to be approximately 1.7 trillion won.

Choi Won-yong, head of the Gyeonggi Free Economic Zone Authority, said, “Due to long-term project delays, inconveniences for residents and infringement on property rights of landowners were serious, but I am glad that rapid and stable public-led development has become possible.” He added, “It is best to revitalize the local economy by normalizing the Hyeondeok district.” “I will do my best,” he said.

[Copyright (c) Global Economic Times. All Rights Reserved.]