KMH Shilla Leisure Selected as New Operator of Incheon Airport Sky72

KMH Shilla Leisure Submits Rent Higher Than Construction's Proposed Minimum Rent

[Asia Economy Reporter Yu Je-hoon] KMH Shilla Leisure has been selected as the new operator of Sky72 Golf Course located near Incheon International Airport.

Incheon International Airport Corporation announced on the 29th that it selected KMH Shilla Leisure as the successful bidder for the public golf course in the Sinbul area and the planned 5th runway area, as KMH Shilla Leisure offered the highest evaluated business rate.

In the competitive bidding process involving over 20 participants, the corporation initially proposed an annual minimum lease fee of 32.1 billion KRW for the golf course, but KMH Shilla Leisure reportedly offered a higher amount in the 40 billion KRW range.

KMH Shilla Leisure, the selected successful bidder, and its parent company KMH Group currently operate Shilla Country Club (27 holes), Paju CC (18 holes), and Tejeve CC (36 holes), and also manage Paganica CC (18 holes) under consignment.

Following this selection, KMH Shilla Leisure will proceed with signing a contract with the corporation after receiving the notification of successful bid and submitting a petition for dispute resolution, and will begin preparations for operations such as facility handover and golf course brand changes, aiming to open on January 1 of next year.

The lease period for the golf course is 10 years for the Sinbul area and 3 years for the planned 5th runway area. Upon expiration, if the operator wishes, extensions are possible after evaluation: up to 10 years in 5-year increments for the Sinbul area, and annual extensions for the 5th runway area.

Meanwhile, Incheon Airport Corporation is conducting the selection process for a successor operator following the expiration of the implementation agreement for the Incheon Airport Golf Course, which has been developed and operated as a support facility for Incheon Airport, starting with the bidding announcement on the 3rd of this month.

Regarding this, the current operator filed for a provisional injunction to halt the bidding process, citing reasons such as priority negotiation rights, contract renewal rights, ownership and business rights from the bidding, claims for purchase of fixtures, and infringement of lien rights for reimbursement of beneficial expenses. However, the court dismissed all these claims on the 21st.