Table of Contents
- From Data Center to Smart Home Apartments: A Shift in Development Direction
- Key Changes to the Development Plan
- Background of the Project and Transition Process
- Future Schedule and Outlook
- Conclusion - Redrawing the Real Estate Investment Map of Buwon-dong, Gimhae
- Gimhae City Notification No. 2025 - 229
- Frequently Asked Questions (FAQ)
From Data Center to Smart Home Apartments: A Shift in Development Direction
The NHN Data Center site located in Buwon-dong, Gimhae City has been transitioned to a residential-centric development. Gimhae City announced on July 30, 2025, the revision of the development plan for the 'Gimhae NHN IDC & Smart Home Urban Development Project' and changed the project's name to 'Gimhae Buwon Smart Urban Development Zone'.
The key aspects of this change involve converting 67.3% of the total area of 30,867㎡, amounting to 20,762㎡, into residential land, while the remaining areas will be developed into urban infrastructure such as parks, roads, and parking lots. This signifies a shift from a data center complex development centered on commercial and office facilities to a purely residential focused development.
Recommended Reading on Gimhae Urban Development Plans
Key Changes to the Development Plan
On July 30, Gimhae City announced the 'Gimhae NHN IDC & Smart Home Urban Development Project Development Plan Revision (4th)'. The main content of this plan is to change land use from a commercial-centered to a residential-centered plan.
The name of the urban development zone has also changed, from 'Gimhae NHN IDC & Smart Home Urban Development Zone' to 'Gimhae Buwon Smart Urban Development Zone'.
The changes in land use are significant. The previously planned commercial land of 20,982㎡ has been entirely removed, and instead, residential land of 20,762㎡ has been newly established. This will result in 67.3% of the entire area being utilized for residential purposes. Additionally, urban infrastructure such as parks, roads, and parking areas will remain at 9,885㎡.
The main infrastructure plans include a park of 5,215㎡, roads of 4,670㎡, and parking lots of 1,250㎡. Changes in design for auxiliary lanes and the location of parking lots will also be implemented.
Background of the Project and Transition Process
NHN and HDC Hyundai Industrial Development planned to construct a data center and 821 multi-use apartment units with an investment of 500 billion won. To facilitate this, Gimhae City changed the area's natural green space to a general commercial area in order to provide groundwork for the project.
Due to changes in the global economy and a reduction in IT investments, NHN decided to withdraw from the project, and HDC also abandoned its data center plans. Subsequently, HDC requested a higher proportion of residential units, adjustments to the floor area ratio, and a public contribution condition of 22 billion won for changing the zoning to semi-residential, which Gimhae City accepted.
However, during this process, some members of the Gimhae City Council strongly criticized it as "preferential land use change," leading to controversy. This situation is receiving considerable attention from the local community, and further discussions may be required depending on future developments.
Future Schedule and Outlook
Gimhae City plans to proceed through consultations with relevant departments when the project implementer requests a change of the implementation plan approval.
The administrative procedures are expected to be completed within this year, and according to the development plan notification for the urban development project, completion is targeted for December 2026. However, there is a possibility of extension depending on the actual start schedule.
Buwon-dong is an area with excellent access to the Gimhae-daero and the Namhae Expressway, and during the upcoming residential supply, the scarcity of new apartments in Gimhae city center and the emphasis on smart home specialized design are expected to be highlighted.
Real Estate and Sale Rights Investment Points
Location advantages include proximity to Gimhae's central commercial district and excellent transportation networks. In particular, the nearby Gimhae City Hall station of the Busan-Gimhae Light Rail has high accessibility.
The development scale is expected to consist of large-scale residential land of over 20,000㎡.
However, there are risks associated with the investment. Administrative controversies may arise during the project change process, and possible changes in the licensing schedule should also be considered.
The future value of sale rights is expected to rise through the introduction of new construction premiums and smart home design.
Conclusion - Redrawing the Real Estate Investment Map of Buwon-dong, Gimhae
The failure of the NHN Data Center is disappointing news, but as it transitions to a residential-focused smart urban development, Buwon-dong in Gimhae is emerging as a new real estate investment destination.
The potential for value appreciation in the sale rights market and revitalization of surrounding commercial areas is increasing, making this a key time for both real estate investors and actual demand seekers interested in this area.
Gimhae City Notification No. 2025 - 229
Establishment Notice of the Gimhae NHN IDC & Smart Home Urban Development Project Development Plan Change (4th)
In accordance with the Urban Development Act Article 4, the development plan change for the Gimhae NHN IDC & Smart Home Urban Development Project, which was established and approved by Gimhae City Notification No. 2024-390 (2024.12.19.), is hereby announced. Interested parties are requested to refer to the relevant documents held at the Gimhae City Hall (Urban Development Division).
July 30, 2025
Mayor of Gimhae
1. Establishment (Change) of Urban Development Project Development Plan
a. Name of Urban Development Zone
(Change)
- Original: Gimhae NHN IDC & Smart Home Urban Development Zone
- Change: Gimhae Buwon Smart Urban Development Zone
b. Location and Area of Urban Development Zone (No Change)
○ Location: Buwon-dong, Gimhae City, Gyeongsangnam-do 564-1, and surrounding area
○ Area: 30,867㎡
c. Purpose of Designation of Urban Development Zone
(Change)
- Original:
○ Efficient land use and early acquisition of urban infrastructure through the complex development of a combination of residential, commercial, and office functions in the undeveloped area between Gimhae-daero and Namhae Expressway.
○ Supporting the expansion of cloud supply for local industries such as manufacturing, medical, finance, and public through the establishment of the 'NHN Cloud Data Center', enhancing industrial competitiveness and revitalizing the local economy.
- Change:
○ Prevention of disorganized development and creation of pleasant and eco-friendly residential spaces through rational and systematic urban development of undeveloped areas between Gimhae-daero and Namhae Expressway.
d. Implementer of Urban Development Project and Location of its Main Office
(Change)
○ Project Implementer
- Original: HDC Hyundai Industrial Development Co., Ltd. CEO Choi Ik-hoon, Kim Hae-eon, Jo Tae-je
- Change: HDC Hyundai Industrial Development Co., Ltd. CEO Jo Tae-je, Jeong Gyeong-gu
○ Address: 9th Floor, 55, Hangangdaero 23-gil, Yongsan-gu, Seoul (Hangangro 3-ga, Hyundai I-Park Mall)
e. Period and Method of Implementation of Urban Development Project (No Change)
○ Implementation Period: From the date of designation (August 13, 2021) to the completion announcement date (December 31, 2026)
○ Implementation Method: Acquisition or usage (No Change)
f. Land Use and Infrastructure Plan
(Change)
1) Land Use Plan (No Change)
| Category | Area (㎡) | Composition Ratio (%) | Remarks | ||||
| Original | Change | Changed | Original | Changed | |||
| Total | 30,867 | - | 30,867 | 100.0 | 100.0 | ||
| Commercial Land | 20,982 | Reduction) 20,982 | - | 68.0 | - | ||
| General Commercial Land | 20,982 | Reduction) 20,982 | - | 68.0 | - | ||
| Residential Land | - | Increase) 20,762 | 20,762 | - | 67.3 | ||
| Multi-family Residential Land | - | Increase) 20,762 | 20,762 | - | 67.3 | ||
| Urban Infrastructure Land | 9,885 | - | 9,885 | 32.0 | 32.0 | ||
| Parking Lot | (1,250) | - | (1,250) | (4.1) | (4.1) | Duplicate decision within park (underground parking) | |
| Park | 5,215 | - | 5,215 | 16.9 | 16.9 | ||
| Retention Facility | (560) | - | (560) | (1.8) | (1.8) | Duplicate decision within park | |
| Road | 4,670 | - | 4,670 | 15.1 | 15.1 | ||
| Other Facilities Land | - | Increase) 220 | 220 | - | 0.7 | ||
| Housing | - | Increase) 220 | 220 | - | 0.7 | For drinking water | |
2) Infrastructure Plan
(Change)
a) Traffic Facilities
(1) Road
(Change)
- Overall Road Table
| Type | Total | 1st Class | 2nd Class | 3rd Class | ||||||||
| Number of Routes | Length (m) | Area (㎡) | Number of Routes | Length (m) | Area (㎡) | Number of Routes | Length (m) | Area (㎡) | Number of Routes | Length (m) | Area (㎡) | |
| Total | 2 | 284 | 4,670 | 2 | 284 | 4,670 | - | - | - | - | - | - |
| Primary Road | - | - | - | - | - | - | - | - | - | - | - | - |
| Middle Road | 2 | 284 | 4,670 | 2 | 284 | 4,670 | ||||||
| Minor Road | - | - | - | - | - | - | - | - | - | - | - | - |
- Decision on Roads
(Change)
Record
| Category | Scale | Function | Length (m) | Start Point | End Point | Use Type | Major Passage | Initial Decision Date | Remarks | |||
| Grade | Type | Number | Width (m) | |||||||||
| Original | Middle Road | 1 | 37 | 23~26 | Local Road | 186(947) | Middle1-84 | Urban Development Zone | General Road | - | April 8, 1999. | |
| Change | Middle Road | 1 | 37 | 23~26 | Local Road | 186(947) | Middle1-84 | Urban Development Zone | General Road | - | April 8, 1999. | |
| Original | Middle Road | 1 | 84 | 3(20~26) | Local Road | 98(125) | Gwangju2-1-3 | Middle1-37 | General Road | - | August 25, 2017. | |
Note: The values in parentheses represent the total length and width of the roads that have already been designated as urban planning facilities.
The roads have been finalized as decided. Changes to this will be explained through a justification document.
| Before Road Change Name | After Road Change Name | Change Details | Reason for Change |
| Middle Road 1 Class 37 | Middle Road 1 Class 37 | ∙ Road Change - Length: 947m(186m) - Width: 23~26m - Area: 4,377㎡ (No Change) | ∙ Change in auxiliary lane due to relocation of parking lot |
(2) Parking Lot
(Change)
| Category | Map Display Number | Facility Name | Location | Area (㎡) | Initial Decision Date | Remarks | ||
| Original | Change | After Change | ||||||
| Change | 1 | Parking Lot | Buwon-dong 253 | 1,250 | - | 1,250 | January 7, 2022. | Duplicate decision within park (1-191) |
- Decision on Parking Lots
(Change)
Justification Document
| Map Display Number | Facility Name | Change Details | Reason for Change |
| 1 | Parking Lot | ∙ Parking Lot Change - Location: Buwon-dong 253 - Area: 1,250㎡ (No Change) | ∙ Adjustment of area due to relocation of overlapping underground parking lot |
b) Space Facilities
(Change)
(1) Park
(Change)
| Category | Map Display Number | Facility Name | Location | Area (㎡) | Initial Decision Date | Remarks | |||
| Original | Change | After Change | |||||||
| Change | 1 | Park | Buwon-dong 253 | 5,215 | - | 5,215 | January 7, 2022. | ||
- Decision on Park
(Change)
Justification Document
| Map Display Number | Facility Name | Change Details | Reason for Change |
| 1 | Park | ∙ Park Change - Location: Buwon-dong 253 - Area: 5,215㎡ (No Change) | ∙ Some changes in the park area due to auxiliary lane design changes for parking lot access |
c) Disaster Prevention Facilities (No Change)
(1) Retention Facility (No Change)
| Category | Map Display Number | Facility Name | Location | Area (㎡) | Initial Decision Date | Remarks | |||
| Original | Change | After Change | |||||||
| Original | 1 | Retention Facility | Buwon-dong 239-1 | 560 | - | 560 | January 7, 2022. | Duplicate decision within park (1-191) | |
e. Changes to Regarding the Matters Specified in Article 22 (1) of the Act on the Acquisition and Compensation of Land for Public Use
(Change)
: Attachment 1
f. Matters Regarding Plans for Facilities Outside the Urban Development Zone Pursuant to Article 2 (6) of the Act on the Planning and Use of National Territory: Not Applicable
g. Period for Application for Approval of Implementation Plan Under Article 11 (8) (4) of the Act (No Change)
h. Changes to the Urban Management Plan
(Change)
1) Records on the Designation of Urban Development Zone
(Change)
| Category | Map Display Number | Zone Name | Location | Area (㎡) | Remarks | ||
| Original | Change | After Change | |||||
| Change | 1-12 | Gimhae NHN IDC & Smart Home Urban Development Zone → Gimhae Buwon Smart Urban Development Zone | Buwon-dong 564-1 | 30,867 | - | 30,867 | |
2) Decision Record for District Unit Planning Area
(Change)
| Category | Map Display Number | Zone Name | Location | Area (㎡) | Remarks | ||
| Original | Change | After Change | |||||
| Change | 1-90 | Gimhae NHN IDC & Smart Home District Unit Planning Area → Gimhae Buwon Smart District Unit Planning Area | Buwon-dong 564-1 | 30,867 | - | 30,867 | |
- Decision Record on District Unit Planning Area
(Change)
Justification Document
| Map Display Number | Zone Name | Change Details | Reason for Change |
| 1-90 | Gimhae NHN IDC & Smart Home District Unit Planning Area → Gimhae Buwon Smart District Unit Planning Area | ∙ Change of name of the district unit planning area - Location: Buwon-dong 564-1 (No Change) - Area: 30,867㎡ (No Change) | ∙ Change of the name of the district unit planning area due to the name change of the urban development project |
j. Method to View Relevant Documents
○ In accordance with Article 9 of the Urban Development Act, the approval matters are announced in public notices, and relevant documents will be provided to interested parties at the Urban Development Division of Gimhae City Hall (Phone: 055-330-3613).
