Incheon City Neglects Existing Operators' 'Unauthorized Occupation' for 4 Months
"Site Usage Period Expired, Not Grounds for Cancellation under Sports Facilities Act"
KMH Presents Supreme Court Precedent: Cancellation Possible by Administrative Discretion
President Kim Kyung-wook of Incheon International Airport Corporation and other corporation officials held a press conference on April 1 at the entrance to the Sea Course of Sky72 Golf Club in Yeongjongdo, Incheon, condemning the unauthorized occupation of the Sky72 Golf Club. They shouted slogans during the event. 2021.4.1 / Yeongjongdo Photo by Kim Hyun-min kimhyun81@
[Asia Economy Reporter Park Hyesook] Despite the unauthorized occupation of the Sky72 Golf Course in Incheon continuing for the fourth consecutive month, the city of Incheon has taken no significant administrative action, citing inadequacies in related laws.
Meanwhile, KMH Shilla Leisure, the new operator of the golf course, has presented a Supreme Court precedent that allows for the cancellation of the golf course registration of the previous operator, drawing attention to the outcome.
On the 14th, KMH Shilla Leisure announced that it had sent the Supreme Court precedent and an opinion letter to Incheon City, the Ministry of Culture, Sports and Tourism, and the Ministry of Government Legislation as review materials related to administrative measures such as the 'cancellation of Sky72 Golf Course registration.'
The Supreme Court precedent cited by Shilla Leisure (from 1984) states that in cases such as ▲'change of circumstances' where there is no longer a need to maintain the original administrative disposition ▲or when there is a significant public interest, the administrative agency may revoke (legally defined as cancellation) the disposition by discretionary action even if there is no legal basis.
Based on this, Shilla Leisure argued that "the extinction of the 'land use rights of the site,' a major element of golf course registration, constitutes an important 'change of circumstances' after registration, even if not stipulated in the Physical Fitness Facilities Act, and is grounds for revocation or cancellation of the golf course registration."
Regarding the significant public interest, they cited concerns such as the suspension of golf course rent payments, which was a major source of revenue for the public institution Incheon International Airport Corporation's airport operations, the occurrence of damages to innocent parties such as golf practice range members, and the decrease in value and profitability of public assets due to aging and poor management of the golf course during the dispute period.
Therefore, Shilla Leisure demanded the cancellation of Sky72 Golf Course registration, stating, "Incheon City's neglect of unauthorized occupation without cancellation of registration is not only legally untenable but also risks encouraging and expanding the selfish interests of the operator who has already gained substantial profits at the expense of public interest."
Incheon City has so far expressed reluctance to cancel the registration of Sky72 Golf Course, arguing that expiration of land use rights, as in the case of Sky72, is not grounds for cancellation under the Physical Fitness Facilities Act, and that litigation regarding contract extension is ongoing.
The city has sent several official letters requesting cancellation of Sky72's registration to Incheon Airport Corporation and Shilla Leisure, but only received repeated responses hoping for an amicable resolution between the parties, and only last month requested an authoritative interpretation from the Ministry of Culture, Sports and Tourism.
A Shilla Leisure official stated, "Incheon City has not exercised even the minimum supervisory authority stipulated in the Physical Fitness Facilities Act, such as issuing administrative guidance or orders to the existing Sky72 operator to resecure land use rights, even if not going as far as cancellation of registration," adding, "They must actively review the Supreme Court precedent and take administrative measures such as cancellation of registration."
Meanwhile, Incheon Airport Corporation filed a complaint with the police on the 1st accusing the Incheon City official in charge of dereliction of duty for failing to take appropriate measures against Sky72's unauthorized occupation and leaving it unattended. On the same day, they cut off water supply to Sky72 Golf Course and plan to cut electricity within this week.
The Sky72 operator, who has been leasing the land from Incheon Airport Corporation since July 2002 to operate the golf course, had its contract expire on December 31 of last year but is currently engaged in a legal dispute with the corporation, claiming ownership of the golf course facilities and reimbursement for improvements while continuing unauthorized occupation.
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