Incheon City Sends Preliminary Notice of 'Sports Facility Business Cancellation' to Sky72

[Asia Economy Reporter Park Hyesook] Incheon City has sent a prior notice to cancel the registration of the existing operator of the 'Sky72' golf course on Yeongjongdo as a sports facility business.

The city announced on the 7th that it plans to proceed with procedures such as a hearing related to the cancellation of registration after hearing the opinion of Sky72 Co., Ltd. by the 20th.

Typically, it takes about 30 to 40 days from the prior notice date to the cancellation of the sports facility registration. Afterwards, the successor golf course operator KMH Shilla Leisure (currently KX Group) will operate the golf course after going through administrative procedures such as business plan approval and sports facility business registration.

Earlier, after the Supreme Court's final ruling in December last year and the forced execution of land delivery by the Incheon District Court last month, it was confirmed that the Sky72 Sea Course (54 holes) was transferred to the ownership of Incheon International Airport Corporation, and the Sky Course (18 holes) was also transferred to the corporation according to the certified copy of the register.

On the morning of the 17th of last month, a forced eviction was carried out at Sky72 Golf Course in Unseo-dong, Jung-gu, Incheon. Court enforcement officials are entering the golf course. 2023.1.17
Photo by Gonghang Photojournalists Group

Sky72 has been operating the golf course and clubhouse by leasing land owned by Incheon Airport Corporation, which was the planned site for the construction of the 5th runway at Incheon Airport, since 2005.

Incheon Airport Corporation and Sky72 set the contract termination date as December 31, 2020, when the 5th runway would be constructed, but the start of the 5th runway was delayed beyond schedule, leading to a legal dispute lasting over two years.

The airport corporation demanded Sky72 to vacate, stating that the contract period had ended, and notified them to hand over all golf course facilities including the turf and clubhouse. Subsequently, a public bidding was held to select a new golf course operator, and KMH Shilla Leisure was selected as the new operator.

Following this, in January last year, the airport corporation filed a lawsuit against the operator demanding land return and ownership transfer, and in response, Sky72 also filed a lawsuit seeking reimbursement for the costs invested in the facilities (improvements) during their lease of the golf course land.

The first and second trials ruled in favor of Incheon International Airport Corporation, dismissing Sky72's claim for improvements. The Supreme Court accepted the judgments up to the second trial and confirmed Incheon Airport's victory in December last year.