Incheon Airport and Sky72 Golf Course Dispute, Airport Corporation Wins Again in Second Trial

Kim Kyung-wook, President of Incheon International Airport Corporation, filed a criminal complaint with the Incheon Police Agency in April last year against Kim Young-jae, CEO of Sky72, for obstruction of business at the entrance to the Sea Course of Sky72 Golf Course on Yeongjongdo Island, Incheon, and announced a statement declaring the suspension of water supply to Sky72. / Yeongjongdo = Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporter Choi Dae-yeol] In the legal dispute between Incheon International Airport Corporation and the operator of the nearby Sky72 Golf Course, the court ruled in favor of the corporation again in the appellate trial.

The Seoul High Court (8th-1st Administrative Division) on the 29th ruled in favor of the plaintiff, Incheon Airport Corporation, in the lawsuit against the golf course operator Sky72 for real estate delivery, just as in the first trial. The first trial's dismissal of Sky72's 'confirmation of negotiation obligation lawsuit' against the airport corporation was also upheld. The court accepted the corporation's claim that "the golf course has been operating by occupying public property without permission beyond the contract period."

If this ruling is finalized, Sky72 must hand over the golf course land to the airport corporation. However, since it is a highly profitable business, it is expected that Sky72 will not accept the decision and seek a final judgment from the Supreme Court.

Sky72 has been operating a golf course and clubhouse since 2005 by leasing land located in Jung-gu, Incheon, the planned site for the construction of Incheon Airport's 5th runway. Both parties agreed at the time of the implementation agreement that the contract would end on December 31, 2020, when the 5th runway would be constructed. The issue arose as the construction of the 5th runway was delayed beyond the schedule.

The corporation demanded that Sky72 vacate the premises, claiming the contract period had ended, and requested the transfer of all golf course facilities, including the turf and clubhouse. On the other hand, Sky72 argued that since the contract expiration was based on the premise of the 5th runway's groundbreaking, the contract period had not yet expired. They also claimed that transferring the facilities to another company was unfair as it was not part of the original contract.

According to the corporation, the court ruled that "Sky72 must deliver the land and buildings to the corporation and complete the registration procedures for the transfer of ownership with a time condition." The court rejected all claims by the golf course operator regarding the purchase of above-ground structures and monetary compensation for beneficial expenses.

Regarding the court ruling, the corporation, through its legal representative lawyer Jeong Jin-ho, stated, "It has been reconfirmed in the appellate trial, as in the first trial, that the land use period stipulated in the implementation agreement between the corporation and Sky72 has definitively ended without renewal or extension." He added, "It is also significant that it was confirmed that Sky72's claims for the right to purchase above-ground structures and lien rights were validly waived." Kim Kyung-wook, president of the airport corporation, said, "We hope the operator immediately ceases the illegal business activities that have been shielded by court procedures."

According to the audit report, Sky72 Golf Course recorded sales of 92.3 billion KRW and operating profit of 21.2 billion KRW last year, the highest performance since starting operations in 2005.