Seoul City is promoting a plan to change the Korean Air site, currently an empty lot in Songhyeon-dong, Jongno-gu, into a 'cultural park' under urban planning facilities. On the 28th, the city announced that it submitted the 'Songhyeon-dong Korean Air Site Park Decision Plan' for consultation at the Urban and Architecture Joint Committee held on the 27th. The decision plan includes changing the site, currently designated as a special planning zone within the Bukchon district unit plan, into a cultural park. The photo shows the Korean Air site in Songhyeon-dong, Jongno-gu, Seoul, which Korean Air is currently promoting for asset sale. Photo by Hyunmin Kim kimhyun81@
[Asia Economy Reporter Dongwoo Lee] Korean Air has tentatively agreed to sell its land in Songhyeon-dong, Jongno-gu, Seoul, to the Seoul Metropolitan Government.
According to the aviation industry on the 4th, Korean Air and the Seoul Metropolitan Government will hold a final agreement ceremony for the sale of the Songhyeon-dong site as early as next week and sign the adjustment document. The ceremony is likely to take place on the 11th or 12th. However, Korean Air and the Seoul Metropolitan Government did not specify the timing of the contract sale in this adjustment.
It is known that the Anti-Corruption and Civil Rights Commission mediated the two parties with a ‘three-party exchange’ method, in which the Korea Land and Housing Corporation (LH) purchases the Songhyeon-dong site and exchanges it with the Seoul Metropolitan Government, leading to the tentative agreement.
This agreement is expected to accelerate Korean Air’s self-rescue plan. Once the Songhyeon-dong site is settled, funds of approximately 450 billion to 550 billion KRW are expected to be secured within this year.
Korean Air has been pushing for the sale of the Songhyeon-dong site since last year, but the sale was delayed after the Seoul Metropolitan Government announced plans to convert the area into a park. Korean Air plans to secure up to 550 billion KRW in funds within this year through the sale of the Songhyeon-dong site and other means.
Last year, Korean Air secured about 800 billion KRW by selling its in-flight meal and duty-free sales business to the private equity fund Hahn & Company, and sold its car limousine business unit to the private equity firm Keystone Partners for 10.5 billion KRW.
A Korean Air official said, "We are continuing consultations with related organizations such as the Anti-Corruption and Civil Rights Commission to reach a smooth negotiation settlement."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
