Exclusive
Busan Mayor Park Heong-joon donates real estate in Cheonggwang-ri, Gijang, previously under 'speculation suspicion,' to a public interest foundation

[비즈한국] A Bizhankook investigation has confirmed that Busan Mayor Park Heong-joon has donated real estate in Cheonggwang-ri, Ilgwang-eup, Gijang-gun, Busan—which was the subject of speculation controversy during the last by-election—to a public interest foundation established by his wife. The foundation that received the property is currently constructing an art museum on an adjacent plot. Around the same time, a gallery founded by Mayor Park's wife newly purchased land in the area. When the speculation controversy first arose, Mayor Park explained that he intended to use the Cheonggwang-ri property for building an art museum and would donate it in the future.

According to Bizhankook's reporting, Busan Mayor Park Heong-joon donated the commercial building and land he owned in Cheonggwang-ri, Ilgwang-eup, Gijang-gun, Busan, to the Cheonggwang Cultural Foundation last December. The donated commercial building has one floor above ground (total floor area of 193㎡), and the land spans a total of 916㎡ at the entrance to Cheonggwang Village. It is currently being used as an access road for the construction site of the art museum being built by the Cheonggwang Cultural Foundation. Mayor Park had previously purchased this property for approximately 500 million KRW in September 2016.

The area is where speculation allegations arose when Busan Mayor Park Heong-joon ran for the by-election in 2021. Mayor Park, his wife, and acquaintances purchased real estate in the Cheonggwang-ri area between 2015 and 2017. As Cheonggwang-ri was excluded from the nearby Busan Jangan District housing development project in 2013, there were expectations of rising real estate prices due to developments in adjacent areas. When running for the Busan mayoral by-election in 2021, Mayor Park omitted a newly built building in Cheonggwang-ri registered in his wife's name from his asset declaration, which led some to raise allegations of real estate speculation.

At the time, Mayor Park explained that he intended to use the Cheonggwang-ri property for an art museum and would donate it later. In March 2021, he stated on social media, "I persuaded several art lovers to pursue an art museum project. We decided to create a public interest foundation to operate it, and together we selected the site and began planning and execution." He added, "The art museum is being built for public interest and will eventually be donated to society. It is not for personal gain. All the assets we own, whatever the amount, will be put into the public interest foundation. The land will also be donated to the foundation."

Mayor Park's wife, Cho Hyun, also said in an interview with the Seoul Economic Daily that same month, "The art museum and the public interest foundation are ways to seek social contribution through asset donation, not speculation for profit."

Mayor Park's wife, Cho Hyun, actually established a public interest foundation by contributing a portion of the Cheonggwang-ri land. In August 2021, she established the Cheonggwang Cultural Foundation by contributing the Cheonggwang-ri plot (total 1105㎡) she held with an acquaintance named Cho, as well as a plot in her own name (562㎡). It is a public interest corporation whose stated objectives include operating art museums and residencies, and cultural and arts education. According to the foundation's public filings, the values of the contributed real estate at the time of establishment were approximately 700 million KRW and 400 million KRW, respectively. Cho Hyun's son, named Choi, served as a director of this foundation until August 2024.

The construction of the Cheonggwang-ri art museum has also entered the visible phase. In August 2024, the Cheonggwang Cultural Foundation received a building permit for a cultural and assembly facility (exhibition hall) spanning two basement levels and two above-ground floors (total floor area of 3194㎡) on a 6015㎡ plot in Cheonggwang-ri. Construction began in November last year, with completion scheduled for this coming June. Currently, ownership of the Cheonggwang-ri art museum site is shared by the Cheonggwang Cultural Foundation (2220㎡), Company A (represented by Cho's son), Company B (a KOSDAQ-listed firm), and an individual named Lee (known to be the Mayor's son-in-law).

Mayor Park's promise to donate his assets to a public interest foundation has been fulfilled to a certain degree. It is understood that apart from the donated real estate, Mayor Park has no other real estate holdings in Cheonggwang-ri. However, his wife, Cho Hyun, still owns more than 300㎡ of land and neighborhood living facilities in the Cheonggwang-ri area. Previously, in December 2024, Cho sold a portion of the Cheonggwang-ri land instead of contributing it to the Cheonggwang Cultural Foundation (Related article: [Exclusive] Busan Mayor Park Heong-joon's wife sells 'speculation-suspected' Gijang land to foundation instead of donating).

Meanwhile, in December of last year, the time of Mayor Park's property donation, Johyun Gallery, established by Mayor Park's wife Cho Hyun, newly purchased land in Cheonggwang-ri. The purchased land totals 1725㎡ (522 pyeong) and is separated by a single road from the Cheonggwang Cultural Foundation's art museum site. It was identified as land used for farming until just before the sale. Johyun Gallery completed the ownership transfer four months after signing the sales contract in August last year. The transaction was completed the day after Mayor Park donated the Cheonggwang-ri property to the Cheonggwang Cultural Foundation.

A Busan city official stated, "Mayor Park Heong-joon's donation of the Cheonggwang-ri property is in line with his existing promise to donate," adding, "We plan to contribute the real estate Cho Hyun owns in Cheonggwang-ri that was purchased for art museum use to the foundation after completing a review. The Cheonggwang-ri building is not subject to contribution as it was not originally part of the art museum construction plan." Regarding the purchase of the Cheonggwang-ri land by Johyun Gallery, the official explained, "It will be used as an art storage warehouse for the gallery and is not related to the foundation's projects."