[비즈한국] It has been confirmed that Lee Joong-keun (85), Chairman of Booyoung Group, has been appointed as the CEO of resort developer BY World. Chairman Lee took the position following the departure of the former CEO, Choi Yang-hwan (76), who is also the CEO of Booyoung Co., Ltd., whose term ended this April. Although BY World had previously pursued the development of a complex resort in Changwon, South Gyeongsang Province, the project was ultimately scrapped. Consequently, Chairman Lee’s appointment has sparked speculation that BY World might be preparing for a renewed push into the Changwon resort development project. Analysts suggest that it is unlikely the chairman would have taken the helm of an affiliate without a specific objective.
BY World was established by Booyoung Group in 2015 to spearhead the Jinhae complex resort project. Booyoung Housing holds a 100% stake in BY World. At the time, the Ministry of Culture, Sports and Tourism (MCST) was pushing for a complex resort project that included a foreigner-only casino. In response, BY World teamed up with South Gyeongsang Province to submit a proposal to invest 5.1 trillion won to build a complex resort in Jinhae-gu, Changwon.
However, the MCST selected "Inspire IR," which proposed an investment in Yeongjongdo, as the new complex resort operator. South Gyeongsang Province, which failed the ministry's evaluation, attempted to push for the construction of a Jinhae Global Theme Park on its own but soon withdrew the business plan. While it was initially expected that the BY World entity would undergo liquidation, it has maintained its corporate status to this day, though no significant business developments have been reported.
BY World originally planned to build the complex resort in the Ungdong District of Jinhae-gu. Changwon City and the Gyeongnam Development Corporation had been pushing for the development of the Ungdong District since 2008, and in 2009, they selected Jinhae Ocean Resort Co., Ltd. as the developer for the Ungdong complex tourism and leisure complex. Changwon City and the Gyeongnam Development Corporation agreed to lease the Ungdong District site to Jinhae Ocean Resort for 30 years in exchange for rent, while Jinhae Ocean Resort agreed to build and operate a golf course and recreational facilities.
At the time South Gyeongsang Province and BY World proposed their complex resort plan, there was controversy over the overlap between the Ungdong District development zone and the site already allocated to Jinhae Ocean Resort. When BY World was excluded from the complex resort operator selection, South Gyeongsang Province announced its intention to cooperate with Jinhae Ocean Resort. In May 2016, the province stated, "Jinhae Ocean Resort, which holds the existing development rights, will build a large-scale complex leisure resort in the Ungdong District, where the global theme park was planned," adding, "Jinhae Ocean Resort has also agreed to cooperate actively, including modifying its development plans to turn the Ungdong District into a new tourist attraction."
However, Jinhae Ocean Resort only completed the construction of the golf course and did not proceed with the remaining parts of the project. Consequently, the Busan-Jinhae Free Economic Zone Authority (BJFEZ) revoked Jinhae Ocean Resort's designation as the developer for the Ungdong District project in 2023. Since then, the authority has excluded Changwon City and designated the Gyeongnam Development Corporation as the sole developer for the project.
Despite the twists and turns, the Gyeongnam Development Corporation and the BJFEZ have recently shown a renewed commitment to developing the Ungdong District. In May of last year, the BJFEZ signed a three-way agreement with the Gyeongnam Development Corporation and Changwon City to normalize the Ungdong District. Furthermore, in December of last year, they held a press conference announcing, "We aim to complete the selection of an operator and establish a development plan by the end of 2027, with construction starting in the second half of 2029 and completion targeted for 2032."
Some speculate that if the Ungdong District development gains full momentum, BY World could potentially participate in the project. Booyoung Group has its own ties to Changwon; it purchased the former Jinhae Chemical site in 2003 to build apartments and acquired Changshin University in Changwon in 2019. Furthermore, the headquarters of BY World is located in Jinhae-gu, Changwon. However, apartment construction has yet to move forward in earnest due to delays in the soil decontamination work at the former Jinhae Chemical site.
The board of BY World includes Chairman Lee Joong-keun and his eldest daughter, Lee Seo-jung (53), an executive at Booyoung Housing. In June of this year, Kim Jong-hyuk was appointed as a new internal director. Mr. Kim serves as a director or auditor at major Booyoung Group affiliates, including Dongkwang Housing, Namkwang Construction, Namyang Development, and Booyoung Environmental Industry. With the Booyoung Group owner's family and key executives now on the board of BY World, the possibility of the company resuming business activities is being discussed. Bizhankook attempted to contact BY World via telephone for comment but was unable to reach them.