BPA to Cover 60% of Repair Costs for Ground Subsidence at Ungdong Back Area Complex

Busan Port Authority (BPA) signed an agreement on the 1st at the Busan branch of the Korean Commercial Arbitration Board with 21 companies located in the Ungdong Backland Complex for repair work on ground subsidence.

The companies in the Ungdong Backland Complex at Busan New Port requested BPA to share the costs of repair work for building damages caused by ground subsidence. Since October 2021, they have applied for arbitration regarding the cost-sharing ratio and construction implementation plan and have conducted seven hearings to date. The process concluded with a settlement ruling at the 7th hearing held on this day.

Busan Port Authority.

As a public institution fulfilling its public interest responsibilities, BPA actively held working-level meetings with the companies in the backland complex and agreed to share 60% of the future repair costs.

The repair work is planned to be carried out under the responsibility of the tenant companies who will continue to use the buildings, but considering the business conditions of the tenant companies and BPA’s budget, the construction is expected to be divided over three years.

Additionally, the costs of repair work that the tenant companies carried out on their own before applying for arbitration will be jointly reviewed for appropriateness by BPA and the tenant companies through external consultation, and then shared according to the agreed cost-sharing ratio.

A BPA official stated, “Busan Port Authority and the tenant companies held a total of eight working-level meetings, actively communicated and made concessions, which led to reaching an agreement. We will promptly determine the construction schedule considering the urgency and business conditions of each company to ensure safety and prevent accidents.”