| JoongAng Ilbo | Lawmaker Jung Dong-hyuk of the Culture, Sports and Tourism Committee of Gyeonggi Province received a report on the follow-up measures from the Gyeonggi Content Industry Department regarding the cancellation of the ‘K-Culture Valley’ project agreement on the 21st and discussed the future direction for successful development projects.
Gyeonggi Province announced that it has been swiftly carrying out follow-up measures since the cancellation of the agreement with CJ LiveCity for the ‘K-Culture Valley’ project on June 28, and has set up a task force for the development of the ‘K-Contents Complex Cultural Complex Development Project’ with Deputy Governor 1 in charge immediately after the agreement was terminated.
The task force includes officials from various fields, public institutions, private sector experts, and meets weekly to establish business plans. In addition to the Gyeonggi Province and national directors, the Vice Mayor of Goyang City, and the head of the Urban Housing Policy Office are also involved in the discussions.
In terms of setting up a dedicated organization for public development, Gyeonggi Province has also announced the enactment of the ‘Gyeonggi Administrative Organization and Personnel Bylaw Partial Amendment Rules’ containing the ‘K-Culture Valley’ office coordination content on the 13th.
The newly established dedicated organization for public development plans to accelerate project implementation through preliminary and project planning work starting next month. By the end of the year, the organization plans to expand further as a project team. Gyeonggi Province has also completed a review to reclaim the commercial land, measuring 41,709㎡, which was previously supplied to CJ LiveCity, and is preparing to submit a supplementary budget proposal and a shared property management plan for deliberation at the council next month.
The commercial land is planned to be used to secure stable business funds for the ‘K-Culture Valley’ by contributing to the Gyeonggi Housing Corporation along with the theme park site. A support ordinance containing the establishment of an independent accounting system within GH and other supporting details has been prepared.
Regarding the designation of an economic free zone to attract foreign investment, separate from the existing area, for the ‘K-Culture Valley’ site, Gyeonggi Province has begun preparing a designation application through consultations with Goyang City.
Above all, Gyeonggi Province has decided to strengthen communication, including local residents’ explanation meetings, and plans to regularly share progress with the council and community representatives to dispel unnecessary misunderstandings and concerns.
Lawmaker Jung Dong-hyuk emphasized, “Gyeonggi Province terminated the agreement to quickly proceed with the large-scale performance venue, experiential studios, accommodation facilities, etc., as originally planned, taking responsibility for the lackluster progress of the ‘K-Culture Valley’ project. He also stressed the need to actively communicate with the citizens of Goyang City to revive the original purpose of establishing a global cultural content industry hub and explore more progressive measures together.”
He further stated, “The ‘K-Culture Valley,’ along with the broadcasting video valley and Ilsan Techno Valley projects led by Gyeonggi Province and GH, is a key project for the development of Goyang City. As a member of the Culture, Sports and Tourism Committee and a lawmaker representing the Goyang district, I will do my best to combine the public’s responsibility and private sector expertise to achieve synergy effects.”
The ‘K-Culture Valley’ mixed development project involves an investment of 1.8 trillion won in Janghang-dong, Ilsan East-gu, Goyang City, to create a K-Pop specialized performance venue, studios, a theme park, commercial, accommodation, and tourism facilities. The overall progress rate for the entire project is only about 3%, and for the performance venue, it is only 17%, leading Gyeonggi Province to determine that CJ LiveCity’s lack of commitment to the project led to the agreement being terminated.
If Gyeonggi Province had not terminated the agreement and it had expired automatically, CJ LiveCity’s construction responsibility and obligations would have disappeared, resulting in a loss of approximately 135.7 billion won for Gyeonggi Province due to the expiration of rights, contract deposits, and performance guarantees, making the termination of the agreement an unavoidable choice due to significant issues in case of non-termination.
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