Source = Google Earth
Korean Air and the Seoul Metropolitan Government, which fought against the sale of the site in Songhyeon-dong, Jongno-gu, Seoul, decided to accept the provisional agreement of the National Rights Commission. This is because Korean Air has accepted the Seoul city’s request not to specify the timing of payment for the sale. This is because it is unclear when the sale price will come in.
According to the airline industry on the 4th, Seoul and Korean Air will hold a final agreement on the sale of the Songhyeon-dong site as early as the 11th or 12th next week.
On the surface, it looks like it is accepting the provisional agreement of the National Rights Commission, which has been in the role of arbitration, but in reality, Korean Air accepts the Seoul city’s request not to specify the timing of the contract. In November of last year, the two sides were the same until just before the final agreement for the site in Songhyeon-dong, but the contract was distorted when the Seoul Metropolitan Government suggested not to specify the timing of the sale contract the day before the signing ceremony. Originally, it was decided to sign a sales contract until April 30, but the city of Seoul suddenly changed its direction.
After the agreement collapsed, the two sides continued to hold discussions amid arbitration by the Authority, and eventually Korean Air accepted Seoul’s demands, ending the old conflict.
As the sale of the site was confirmed, a green light was lit in the Korean Air self-help plan. Initially, Hankook Industrial Co., Ltd. planned to secure 500 billion won of liquidity through the sale of the site, but the sale was delayed when the city of Seoul suddenly announced that the site would be parked.
However, as the timing of the contract is uncertain, it is not known when Korean Air will be able to receive the sale price. The Seoul Metropolitan Government has promoted the’third-party sale through LH Corporation’ for the Songhyeon-dong site. This is a method in which LH pays for the site in Songhyeon-dong first, and the Seoul Metropolitan Government gives other land to LH Corporation. As a result, the Seoul Metropolitan Government has selected the site of the Western License Examination Center in Sangam-dong, Mapo-gu as the land to be given to the LH Corporation, but is in a state of stagnation due to opposition from local residents. Therefore, Korean Air’s Songhyeon-dong site is finally sold only when Seoul City and LH find an agreement on this part.