Busan city has recently transitioned the Dalmaji Park development project to a fully private investment model.
During a recent administrative audit at the city council, concerns were raised that the change in project approach was due to the inability to secure 23.3 billion won in construction costs. However, the city clarified that the decision was made not because of budget shortages, but to diversify park content and ensure efficient financial distribution.
According to the Busan city Park and Leisure Policy Division, the initial plan was to attract private investment only for certain facilities, such as the parking lot. However, during a consulting process with the Busan Research Institute, several private companies expressed strong interest in investing, prompting the city to pursue a complete transition to a non-financial investment model.
A city official stated, "Utilizing private capital and ideas rather than proceeding as a simple financial project will allow us to provide unique landscaping facilities and tourism content, making the area a much more attractive tourist destination."
Addressing the controversy over alleged failure to secure development costs, the city emphasized that approximately 142.5 billion won has already been allocated for land compensation covering the entire area of 211,590 square meters since the long-term urban park sunset provision was enacted in 2018.
The city had already budgeted 23.3 billion won for development costs but decided to expand private investment in eastern Busan to reinvest park development funds into other areas, such as western Busan and the old downtown, where parks are lacking.
To mitigate potential risks associated with the shift to private investment, including concerns over public interest and the financial viability of operators, the city is implementing safeguards. Since the project site has already undergone land acquisition, the city will not transfer permanent land use rights to private operators but will grant them operational rights for a limited period to recover their investments.
A city official noted, "We are currently working closely with the Busan Research Institute to thoroughly examine the revenue structure and recovery period of the private proposal companies. While some facilities with high operational costs, such as parking lots, may operate on a fee basis, we will continuously negotiate with operators regarding the extent of public access to the park to maintain its value as a public asset."
The city plans to meet with the council member who raised these issues during the administrative audit to provide a detailed report on the rationale for the project changes and future plans.
* This article has been translated by AI.
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