Chuncheon Water Thermal Energy Cluster to Use Negotiated Contracts Instead of Lottery, Directly Selecting Companies for Shared Growth

【Financial News Chuncheon = Kim Ki-seop, reporter】The site for the Chuncheon Water Thermal Energy Convergence Cluster will be sold through negotiated contracts rather than allocated by lottery.
According to Chuncheon on the 29th, the Ministry of Land, Infrastructure and Transport (MOLIT) recently accepted a plan to switch the allocation method for sites in the Gangwon Water Thermal Energy Convergence Cluster to negotiated contracts. The cluster, which requires 422.3 billion won just for infrastructure construction, has been designated a leading investment district. Under current law, if two or more companies apply to move in, the recipients must be selected by lottery. This meant the city could not choose companies based on their contribution to the local community.
After securing a legal basis for allocating the sites through negotiated contracts by obtaining an authoritative interpretation of the relevant laws and regulations, Chuncheon sought to persuade MOLIT together with Gangwon State and the office of National Assembly member Heo Young. Gangwon State and Chuncheon have emphasized the need for a locally led evaluation process, warning that selecting a company with weak financial resources or an inadequate business plan through a lottery could result in losses of local government funds.
Chuncheon plans to publicly announce an amendment to the implementation plan around the middle of next month and launch a call for proposals from companies seeking to move in. After evaluating the proposals in November, it will hold final consultations with MOLIT and complete the selection of tenant companies and the land-sale contracts by December. The evaluation will comprehensively consider each company's ability to move the project forward swiftly, its plans to contribute to Chuncheon's industrial ecosystem, and the potential to expand collaboration with the city. The water thermal energy cluster is targeted for completion in 2028.
Chuncheon Mayor Yuk Dong-han said, "We cannot accept yet another data center that merely uses local resources while creating few jobs and having little industrial ripple effect." He added, "Now that we can vet companies—something that would have been impossible under a lottery—we will open our doors to those that present plans to grow together with Chuncheon."


[email protected] Kim Ki-seop Reporter