Seoul City, "No Offer Made to Korean Air for Songhyeon-dong Site Purchase Price"

"Only Expressed Intent to Purchase... Will Buy at Fair Price Based on Appraisal" Explanation

[Asia Economy Reporter Jo In-kyung] The Seoul Metropolitan Government clarified that it has only expressed its intention to purchase the land owned by Korean Air, located in Songhyeon-dong, Jongno-gu next to Gyeongbokgung Palace, where it is planning to create a park, but has never proposed a purchase price.

On the 29th, Seoul City denied rumors that "the land, estimated to be worth around 500 billion KRW, is being purchased by Seoul City for 200 billion KRW," stating, "We have never proposed a specific purchase amount to Korean Air. We conveyed our plan to purchase at a fair price through an impartial appraisal."

The city also added, "We are proceeding with preliminary procedures for budget allocation, but no budget has been set aside for the land purchase."

Currently, Seoul City is in the process of designating the Songhyeon-dong land as a "cultural park." In fact, even if a private party other than Korean Air, which currently owns the land, purchases it, it would be impossible to generate profits through other developments.

In the clarification statement, the city explained, "In August last year, we first expressed our intention to purchase the land to Korean Air, and through several consultations thereafter, we continuously conveyed our purchase intention. However, Korean Air responded that no decision had been made regarding the sale of the land, making negotiations difficult. Subsequently, in February this year, as Korean Air entered a public sale process including the selection of a land sale agent, Seoul City again conveyed its intention to purchase the land and promote park development via an official letter in March."

The city further asserted, "The Land Compensation Act stipulates that when calculating compensation for public projects, changes in land prices due to the public project should not be considered. Therefore, the claim that the land is being purchased at a low price by designating it as a park is not true."