Uijeongbu City stirs controversy as it tries to drop logistics center plan

Uijeongbu City logistics center site [Photo by Park Hyung-ki]

Businesses in South Korea continue to suffer because of leadership changes and policy shifts in local government organizations in a recent case that involves Uijeongbu City’s attempt to overturn a logistics center project that had previously been approved by its former mayor, sparking strong opposition from private business owners.

According to sources on Thursday, the inspection division of Gyeonggi Province has launched an audit to investigate allegations of “unfair administrative practices” within Uijeongbu City. The division is currently gathering essential information from the city and private businesses.

The project owners of the logistics center, who obtained the construction permit during the tenure of the city’s previous mayor, now faces the imminent threat of project cancellation due to the city’s lack of cooperation in subsequent administrative procedures. Frustrated with the situation, the operators lodged a complaint with the Board of Audit and Inspection in April. The Board, recognizing the significance of the case, classified it as a “major audit matter” and forwarded it to Gyeonggi Province last month.

The Uijeongbu Multicultural Convergence Complex, which is being promoted with an investment of 1.7 trillion won ($1.31 billion) to become the next generation K-content production base, is called Rhythm City after the name of the project owner group.

This public-private joint venture, where Uijeongbu City holds a 34 percent stake, has yet to commence construction of two logistics center units with a total area of 43,587 square meters designated as urban support facilities.

The complications arose when Uijeongbu City Mayor Kim Dong-geun, who campaigned on the promise of “nullifying the logistics center plan,” was elected during the local elections in June last year, despite the project having already obtained a construction permit from his predecessor Ahn Byung-yong. Concerns from residents residing near Rhythm City about the safety risks posed by freight vehicles serving the logistics center played a significant role in Mayor Kim’s campaign pledge.

In February, Uijeongbu City proposed to the project owners to sign a win-win agreement stating that they would not proceed with any business and administrative applications related to the logistics center. The project owners rejected the proposal, saying that it was “effectively a business abandonment memorandum.”

The “pre-use permit for completion” application, submitted by the business operators to Uijeongbu City to initiate construction on the logistics center, is also experiencing continuous delays. In response to the mounting concerns, Uijeongbu City clarified that their actions were not indicative of administrative bullying and emphasized that nullifying the project was an effort to represent the interests of the citizens. They expressed a commitment to fully cooperate with the audit conducted by Gyeonggi Province.

The pre-construction use permit filed by the project owners to Uijeongbu City for the construction of the logistics center has also been delayed. In response, Uijeongbu City said that “the view of administrative overbearing seems to be a misunderstanding. The plan cancellation was a measure to represent the citizens’ position, and we will sincerely receive the audit from Gyeonggi Province.”