Lawsuit Over Cancellation of Consignment Operation Contract Renewal
Facility Handover Process and Selection of Next Operator Expected to Accelerate
It is expected that tourists hoping to enjoy the breathtaking coastal scenery from above will soon be able to do so with ease once again.
Uljin County in North Gyeongsang Province has secured a legal foundation for normalizing the operation of the Jukbyeon Coastal Skyrail, having won both civil and administrative lawsuits related to an operational rights dispute with the existing operator, 'Skyrail'.
On December 22, the Yeongdeok Branch of the Daegu District Court ruled in favor of Uljin County in a "claim for delivery of real estate and other property" lawsuit, ordering Skyrail, which continued to occupy the facility after the contract period ended, to return the facility, stating that "the contract has clearly ended and there is no right to occupy."
Previously, Uljin County had decided not to renew the consignment operation contract that expired on August 1, 2024. In the subsequent lawsuit filed by Skyrail to cancel the county’s decision to refuse contract renewal, the court found Uljin County's action to be justified and dismissed the operator’s claim.
The court based its ruling on several points: the clear fact that the contract had ended, the absence of any legal obligation to guarantee a contract renewal, and Skyrail’s loss in the administrative lawsuit regarding the refusal to renew the consignment operation contract. As a result, the court recognized that Skyrail had lost its right to occupy the facility and ruled in favor of Uljin County.
With these victories in both civil and administrative lawsuits against Skyrail, Uljin County has received a green light for normalizing the operation of the Jukbyeon Coastal Skyrail.
Since its opening in July 2021, the Jukbyeon Coastal Skyrail has become a leading tourist attraction in Uljin County. However, during Skyrail’s consignment operation, issues were raised regarding operational transparency, excessive spending on service fees, refusal to submit settlement data, and a reduction in the amount of business profit returned to the local community.
In particular, the operator failed to comply with the county’s legitimate request for settlement data and entered into service agreements for maintenance and repairs-directly related to facility safety-without sufficient consultation with Uljin County.
Uljin County stated that a comprehensive review of the contract was unavoidable in order to protect public assets and ensure the safety of county residents.
Following this ruling, Uljin County will begin the process of reclaiming the facility. If Skyrail does not voluntarily comply, the county plans to consider compulsory execution in accordance with legal procedures.
Additionally, Uljin County plans to conduct safety inspections and maintenance immediately after reclaiming the facility, aiming to minimize inconvenience for tourists and quickly establish a stable operating environment.
Uljin County commented, "This ruling is a legal recognition of our efforts to responsibly manage public tourism facilities, which are the pride of the county and its residents. We will do our utmost to fully normalize the facility so that neither residents nor tourists are inconvenienced, and we will strive to restore the Jukbyeon Coastal Skyrail as a trusted tourist destination."
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