Table of Contents
- Ungdong 1 District, Accelerating Normalization Through Public-Led Development After 15 Years of Drift
- Progress Status as of June 2025: Plans Are Moving Quickly, Conflicts Persist
- Challenges to the Normalization of the Project
- Golf Course in Operation, Hotel on Hold... What Will Happen to the Resort Project?
- Conclusion: Wouldn't a Port Hinterland Be a More Realistic Alternative Than a Tourist Complex?
- Frequently Asked Questions (FAQ)
Ungdong 1 District, Accelerating Normalization Through Public-Led Development After 15 Years of Drift
The Ungdong 1 District, located in Sudong and Jeodeok-dong of Jinhae-gu, Changwon City, Gyeongnam, is planned to cover approximately 680,000 pyeong, or 2,250,000 square meters. The project for creating a mixed tourism and leisure complex began in 2009, but it has faced long delays due to issues with private investors' financing and insufficient progress in the project.
As of now, only a 36-hole golf course has been completed, while major facilities such as lodging and resorts have not begun construction for over a decade. In March 2023, the designation of the existing implementing organizations, including Changwon City, Gyeongnam Development Corporation, and Jinhae Ocean Resort, was canceled.
Subsequently, in March 2025, the Gyeongnam Development Corporation was selected as the sole implementing agency, and the normalization plan for the project under public leadership has officially commenced. This change is expected to have a positive impact on the revitalization of Ungdong 1 District in the future.
Progress Status as of June 2025: Plans Are Moving Quickly, Conflicts Persist
The Gyeongnam Development Corporation is currently requesting to amend the development plan and extend the project period to the Ministry of Trade, Industry and Energy. This request includes an additional extension of ten years until 2032, and depending on the results of the review at the end of June, the basic planning service and feasibility study will begin in earnest in the second half of the year. The target timeline includes conducting the detailed design in 2026, starting construction in 2028, and completing the project by 2032.
Additionally, the Busan-Jinhae Free Economic Zone Authority reported on the project's status to the special committee of the Gyeongnam Provincial Council in June and explained various matters. These included infrastructure construction plans, selection of the golf course operator, and timelines for handling livelihood support sites.
The plans for accommodation facilities such as hotels and condos are currently being comprehensively reviewed in terms of scale and type, and a new business model is needed to attract private capital. However, as the Free Economic Zone Authority maintains its stance of "a full review of the establishment of hotels and resorts," a debate over "changing statements" is occurring within the local community. These changes are expected to have a significant impact on the local economy.
Challenges to the Normalization of the Project
The situation regarding legal risks is complex. In 2023, Changwon City filed an administrative lawsuit regarding the cancellation of the designation of the implementing agency, but it lost in the first trial and is currently undergoing an appeal. The outcome of this ruling is likely to have a significant impact on the project structure and its speed of advancement.
Moreover, conflicts and a lack of trust among residents are serious issues. The association of disappearing fishers has requested a public audit from the Public Interest Audit Agency and is urging the establishment of livelihood support measures. Conflicts over proper compensation for loss of fishing rights and the granting of development rights for livelihood support sites are ongoing, along with a pressing need for transparent information disclosure and the establishment of an intermediary oversight system.
Securing financial soundness and attracting private investment are also critical situations. As of March 2025, the debt ratio of the Gyeongnam Development Corporation stood at 160.52%, but this is considered relatively stable as it is within the bond issuance limit of 300%. However, attracting private investment in tourism and lodging facilities remains uncertain, and securing the project's profitability remains a key challenge.
Golf Course in Operation, Hotel on Hold... What Will Happen to the Resort Project?
So far, the only completed facility in the Ungdong 1 District is the 36-hole golf course. This golf course has been constructed and partially operated by Jinhae Ocean Resort, but due to unrefunded loans and the cancellation of agreements, the operating rights will be transferred to the Gyeongnam Development Corporation in the future.
Plans for the construction of upper facilities such as hotels, condos, and resorts may be significantly altered based on usage adjustments and economic feasibility reassessment. The construction of accommodation facilities should comprehensively consider various factors, including local tourism demand, environmental impacts, and compensation for fishing rights, and there is a growing opinion that a 'locally symbiotic model' is necessary.
Thus, the development direction of the Ungdong 1 District requires a cautious approach that reflects the unique characteristics and demands of the region. I hope for successful development as we observe the future progress.
Conclusion: Wouldn't a Port Hinterland Be a More Realistic Alternative Than a Tourist Complex?
The development of Ungdong 1 District is undergoing public-led restructuring after a prolonged delay. However, questions remain regarding the feasibility of the existing concept of developing a complex tourism area centered on lodging and resorts.
In fact, this area lacks attractive tourism resources or elements that could draw visitors, and there are currently no cases that can prove the viability of the project besides the existing golf course. Reflecting these realistic constraints, in 2023, the Busan-Jinhae Free Economic Zone Authority considered the possibility of changing some of Ungdong 1 District's land uses from a tourism complex to industrial land, specifically a port hinterland.
This can be seen as a strategic choice considering the future connectivity with large-scale national infrastructure projects like the Gadeokdo New Airport, Southern Inland Railway, and Jinhae New Port. It remains to be seen whether these changes will positively affect regional development.
In my personal opinion, developing a port hinterland linked to Jinhae New Port seems more realistic than a tourism-centered development at this stage. Transitioning to a medium- to long-term model that simultaneously secures profitability and public interest through synergy between logistics and industrial infrastructure would be a more desirable direction for the future of Ungdong 1 District.
It is now time to objectively review what feasible plans can persuade the market. Through this, we should create opportunities that can enhance future development potential and have positive impacts on the local economy.
#JinhaeUngdong1District, #UngdongDistrict, #BusanJinhaeFreeEconomicZoneAuthority, #GyeongnamDevelopmentCorporation, #UngdongResort, #JinhaeGolfCourse, #ResortDevelopment, #LodgingFacilityDevelopment, #JinhaeOceanResort, #GyeongnamProvincialCouncil, #UngdongSpecialCommittee, #PublicDevelopment, #TourismLeisureComplex, #HotelResort, #MixedTourismDevelopment, #GolfCourseOperation, #ChangwonCityLawsuit, #FreeEconomicZoneAuthorityPolicies, #DisappearingFishermenResponse, #FreeEconomicZone, #PublicAgencyDevelopment, #GyeongnamTourism, #TransparentAdministration, #CitizenSenseOfPresence, #2032CompletionGoal, #LodgingFacilityReevaluation, #ResortProjectStatus, #GyeongnamTravelDestinations, #JinhaeDevelopment, #JinhaeTourismDevelopment
Frequently Asked Questions (FAQ)
Q. How is the development project of Jinhae Ungdong 1 District progressing?
The development of Ungdong 1 District, which has been delayed for 15 years, is currently being normalized through public-led development in 2025.
The Ungdong 1 District project began as a mixed tourism and leisure complex in 2009, but it has been delayed for 15 years due to a lack of funding from private developers and insufficient project progress. In 2023, the designation of the existing implementing agency was canceled, and in 2025, the Gyeongnam Development Corporation was selected as the sole implementing agency, spearheading the normalization of the project under public leadership. Currently, systematic efforts are being made, including a request for amendments to the development plan and an extension of the project period to the Ministry of Trade, Industry and Energy.
Q. What facilities have been completed in Ungdong 1 District so far, and what are the future development plans?
Currently, only a 36-hole golf course has been completed, and lodging and resort facilities are under reevaluation.
Currently, only the 36-hole golf course in Ungdong 1 District has been completed and is in operation. Plans and scale for accommodation facilities such as hotels and condos are under a comprehensive reevaluation. There is a significant possibility of changes to the resort project based on usage adjustments and economic feasibility assessments, and a new model for attracting private capital is deemed necessary. Sustainable reflection of local characteristics and economic viability assessments will carefully determine the future development direction.
Q. What are the main conflicts and legal issues hindering the normalization of the project?
Conflicts and distrust continue due to legal litigation and issues regarding compensation for residents' fishing rights.
Changwon City is currently undergoing an appeal after losing in the first trial regarding the administrative lawsuit related to the cancellation of the designation of the implementing agency in 2023, and the outcome of this ruling significantly impacts project advancement. The association of disappearing fishermen is experiencing conflicts as they request a public audit regarding compensation for the loss of fishing rights and issues concerning livelihood support sites. Transparency in information disclosure and the establishment of a conflict management system are required, as well as addressing the challenges of financial soundness and attracting private investment.
Q. What is the possibility of transitioning from tourism complex development to a port hinterland in Ungdong 1 District?
The development of a port hinterland is being considered as a more realistic alternative than a tourism complex.
The feasibility of developing a tourism complex has been questioned due to a lack of tourism resources in Ungdong 1 District. The Busan-Jinhae Free Economic Zone Authority is reviewing the possibility of changing some land uses to industrial land, specifically port hinterland. This is seen as a strategic choice considering connectivity with national infrastructure such as Gadeokdo New Airport, Southern Inland Railway, and Jinhae New Port. It is evaluated as a medium- to long-term model that secures both profitability and public interest through synergy between logistics and industrial infrastructure.
Q. What are the expected effects of the transition to public-led development on the Ungdong 1 District project?
Public-led efforts are expected to have a positive impact on the normalization of the project and regional revitalization.
The Ungdong 1 District project, which has been stagnant for a long time due to the financial issues of private developers, has now transitioned to a public-led structure with the selection of the Gyeongnam Development Corporation as the sole implementer in 2025. This is expected to speed up project advancement by amending development plans, extending the project period, securing funding, and attracting private investment. Furthermore, careful development that reflects local characteristics is anticipated to have a positive effect on resolving resident conflicts and revitalizing the economy.
