Ssangyong Information & Communications Partially Wins First Trial in Debt Non-Existence Confirmation Lawsuit Against Government

[Asia Economy Reporter Lim Jeong-su] Ssangyong Information & Communications announced on the 9th that it has won a partial victory in a civil lawsuit filed against the government.

According to Ssangyong Information & Communications, the Seoul Central District Court ruled on the same day in the debt non-existence confirmation lawsuit (case number: 2017gahap570703) filed by the company against the government, ordering "payment of about 11.6 billion KRW out of the claimed amount of 20.9 billion KRW."

In October 2017, Ssangyong Information & Communications filed a debt non-existence confirmation lawsuit against the government, confirming that there was no liability for damages, progress payments, or interest refund obligations related to the service contract concluded in December 2013. In response, the government filed a counterclaim for repayment in January 2018. In this trial, the actual amount claimed against Ssangyong Information & Communications out of the government's claim of 20.9 billion KRW was about 11.6 billion KRW.

Ssangyong Information & Communications argued in court that "the Navy, as the ordering party, unjustly terminated the contract," denying responsibility for the repayment claim. Accordingly, the court recognized Ssangyong Information & Communications' responsibility only for 11.6 billion KRW of the repayment claim.

Park Jin-guk, CEO and Executive Officer of Ssangyong Information & Communications, said, "With this ruling, the litigation risk that has continued since the lawsuit disclosure in 2018 has been resolved," adding, "Separately from the lawsuit, the business is progressing well and liquidity is abundant. We will actively respond to the second trial by depositing the entire repayment claim amount ruled in the first trial without delay interest risk."

Meanwhile, Ssangyong Information & Communications successfully completed its defense business in the third quarter of last year and achieved a turnaround to profitability with sales of 71 billion KRW and operating profit of 300 million KRW through profitability-focused business. Recently, by acquiring Comtec Information & Communications, which possesses the best ICT personnel and technology in Korea, the company is also strengthening its competitiveness in the cloud business.