Successor Operator of Sky72 Golf Course Applies to Incheon City for Change of Sports Facility Business Registration

[Asia Economy Reporter Park Hyesook] KMH Shilla Leisure Consortium (currently KX Group), the successor operator of Sky72 Golf Course on Yeongjongdo Island, Incheon, has applied to Incheon City for a change of registration in the sports facility business.

KMH Shilla Leisure announced on the 21st that this administrative procedure was carried out with the agreement of the existing Sky72 operator. The administrative processing period for the change of registration in the sports facility business is 20 days.

KMH Shilla Leisure plans to retain all Sky72 employees and allow course managers (caddies) to continue working. In addition, while undergoing the change registration process, renovation work on the facilities and courses of Sky72 Golf Course will also be carried out.

A KMH Shilla Leisure official said, "We will partially replace the aging clubhouse facilities and refurbish the courses to upgrade the quality of the golf course," adding, "We will proceed with the related administrative procedures and construction without delay so that golfers can visit again as soon as possible."

Sky72 Golf Course

The existing Sky72 operator had leased land owned by Incheon International Airport Corporation, the planned site for the construction of the 5th runway at Incheon Airport in 2005, and developed and operated the golf course and clubhouse.

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

The airport corporation demanded Sky72 vacate the premises, claiming 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 chosen as the new operator.

Following this, the airport corporation filed a lawsuit last year against Sky72 demanding the return of the land and transfer of ownership. In response, Sky72 also filed a lawsuit seeking reimbursement for the costs invested in the facilities (useful expenses) 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 useful expenses. The Supreme Court upheld the decisions of the lower courts and confirmed Incheon Airport’s victory in December of last year.