Supreme Court Upholds Incheon Airport Corporation's Victory
Successor Operator KX Group "Changing Name and Launching New Brand"
[Asia Economy Reporter No Woo-rae] The Sky72 Golf Course, which had been embroiled in a legal battle, is being reborn.
A representative of the successor business, KX Group (formerly KMH Shilla Leisure), said on the 1st, "With today's Supreme Court ruling, all legal procedures have been completed," adding, "We will change the name and start anew." Sky72 cannot use its trademark as it is registered by another party. The representative added, "We want to create a new model as well," and "It is a time when a golf industry brand is needed."
The dispute between Incheon International Airport Corporation and Sky72 Golf Course ended on this day. Incheon International Airport Corporation won the final legal battle against the operator of the golf course near the airport, regaining the golf course land and the facilities built on it. Last year, Sky72 Golf Course recorded sales of 92.3 billion KRW and an operating profit of 21.2 billion KRW, reportedly the highest performance since it began operations in 2005.
Incheon International Airport Corporation can enforce compulsory execution against Sky72 two weeks after the Supreme Court ruling. The exact reopening date under the new owner is unknown. The golf course may close immediately after acquisition for maintenance or continue operations while addressing deficiencies. The KX Group stated, "What we hope for is a smooth completion of all acquisitions," promising, "We will prepare thoroughly and provide the best service."
KX Group plans to focus on normalizing the golf course. They have decided to maintain employment for about 1,000 employees. They also intend to actively cooperate with tenant businesses and partner companies. The KX Group emphasized, "We will take swift measures to ensure that the approximately 450,000 annual golf course users do not experience inconvenience," and "We will continue the reputation of the metropolitan gateway golf course."
Incheon International Airport Corporation and Sky72 Golf Course had been engaged in a legal battle for the past two years. Sky72 Golf Course had leased land in Jung-gu, Incheon, from Incheon International Airport Corporation since 2002, where the fifth runway was planned to be constructed, and had developed and operated the golf course and clubhouse. At the time of the implementation agreement, both parties set the contract termination date as December 31, 2020, when the fifth runway would be constructed.
The problem arose as the construction of the fifth runway was delayed beyond schedule. Incheon International Airport Corporation claimed the contract period ended on December 31, 2020, and demanded Sky72 Golf Course vacate the premises and hand over all golf course facilities, including the turf and clubhouse. KX Group was selected as the new operator of the golf course.
On the other hand, Sky72 Golf Course argued that the contract expiration was conditional on the start of the fifth runway construction, so the contract period had not yet ended. They also claimed that handing over the facilities to another company was unfair as it was not part of the original contract. In January last year, Incheon International Airport Corporation filed a lawsuit against the operator demanding land return and ownership transfer, and three months later cut off electricity and water supply to the golf course. Sky72 Golf Course filed a counterclaim seeking reimbursement for the costs invested in the facilities during their lease period.
The first and second trials accepted Incheon International Airport Corporation's claims. They ruled that it was reasonable to consider the land use period of Sky72 Golf Course ended according to the original agreement between the parties. Sky72 Golf Course's claim for reimbursement of beneficial expenses was dismissed, stating, "If recognized, it would allow recovery of costs far exceeding the original investment." The Supreme Court upheld the rulings of the lower courts and confirmed Incheon International Airport Corporation's victory.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
