Busan, South Korea – In a recurring theme of setbacks, Busan City announced yet another failed attempt to sell the Dadae Incineration Plant site on December 20. This marks the sixth unsuccessful bid to privatize the site for developing a cultural and recreational complex. The latest auction, which ended on December 12, saw only one bidder who did not fulfill the requirement of a 5% bid bond, leading to its ultimate failure.
The Dadae Incineration Plant, decommissioned in 2013, has been a focal point of redevelopment in Busan, with plans to transform it into a key tourism hub in the western part of the city, which notably lacks sufficient tourist accommodations. Mayor Park Hyung-jun has highlighted this project as the first of Busan’s 12 major long-stalled projects, aiming to revitalize the area with a new cultural and leisure destination.
Faced with repeated auction failures – previously in July and October of last year, and in February, May, and October this year – the city has now decided to forego public auctions in favor of private negotiations. According to the Public Property Act, a private contract is permissible when an auction fails twice under the same conditions. The city is set to conduct open negotiations with all interested parties, encouraging creative development approaches.
A key stipulation in the negotiations is maintaining the primary purpose of the site as a tourist hotel, along with directions for auxiliary facility development. The deadline for payment of the sale amount, previously extended by a year, could be further postponed, likely becoming a major point of discussion. If multiple companies agree to the same conditions, a committee of experts will be established to select the final developer.
Busan’s Tourism Promotion Division has noted that many companies have shown interest and have been in preliminary discussions. “We plan to hear various creative opinions through individual negotiations in the first half of next year to find the optimal development direction and developer,” said a representative.
The challenges and complexities of urban redevelopment in Busan are highlighted by this ongoing issue. The city’s shift in strategy, from public auctions to private negotiations, reflects a renewed effort to finally set this long-delayed project in motion, aiming to enrich the western Busan area as a vibrant tourist destination.
As Busan City grapples with the challenges of redeveloping the Dadae Incineration Plant, the expectations and concerns of the local community continue to mount, emphasizing the need for a clear and effective strategy to bring this long-awaited project to fruition.
