Kyowon Chairman's Mansion Development Approved Through Alleged Regulatory Loopholes

A sprawling mansion being built for the chairman of Kyowon Group, a company known for its "Red Pen" educational products, is at the center of a controversy in Yangpyeong County. The development received approval through a process that allegedly exploited regulatory loopholes.

The Gyeonggi Provincial Government has requested disciplinary action against two Yangpyeong County officials involved in approving the development. The chairman's team applied for development permits for a 13,000-square-meter plot in August 2023, dividing it into three sections, each under the 5,000-square-meter threshold that triggers stricter regulations.

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The approval was divided, but we voluntarily underwent separate small-scale environmental and disaster impact assessments, even though it was not a legal requirement.

Yangpyeong County approved these as separate projects in March 2024. However, residents have since complained about significant disruptions, including noise, structural damage to their homes, and safety concerns caused by frequent passage of large construction vehicles on a mere 3-meter-wide village road. The provincial audit concluded that the county should have recognized the project as a single entity and reviewed it accordingly.

Under current land use laws, developments over 5,000 square meters require an access road of at least 6 meters wide. By splitting the application, the developers avoided this requirement. Kyowon Group maintains that all permits were obtained legally and that they voluntarily underwent separate environmental and disaster impact assessments, denying any intent to evade regulations. They stated the chairman delegated the construction management to a specialized firm and was not involved in any improper dealings.

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There were no improper actions, such as forcing approvals that were not possible.