Korean Air fights “real land” in Jongno, Seoul, an agreement is reached on the 26th

The conflict between Korean Air and Seoul over the Songhyeon-dong, Jongno-gu, Seoul site ends on the 26th.

According to Korean Air and the Civil Rights Commission on the 12th, Korean Air and Seoul will hold a signing ceremony near the Songhyeon-dong site on the 26th. The agreement includes the timing and method of selling the Songhyeon-dong website and the method of determining the trading price. The sale price is not included in the contract. It is expected that it will be decided later by evaluation.

President Jeon Hyun-hee also attended the National Assembly’s Preliminary Committee that day and said, “The conclusion of the interim adjustments has been reached” on the Korean Air and Seoul site arbitration case. When asked, “When do you think the conclusion will come?”, Jeon replied, “At the latest, it will be published by the end of this month.”

As for the promising deal, the way Korean Air buys through third parties like LH is emerging. After a third party buys the land and pays Korean Air, the third party buys the land and exchanges it for land owned by Seoul.

The Songhyeon-dong site was bought by Korean Air for 290 billion won by Samsung Life Insurance in 2008. Korean Air promoted the development of a hanok hotel, but decided to sell it in February due to management difficulties.

However, the Seoul metropolitan government unveiled its plan for parking the Songhyeon-dong site in May, complicating the matter. This is because development is limited when it becomes a park. The land in Songhyeon-dong received great attention to the point that 15 airlines expressed their intention to participate in the auction after Korean Air’s intention to sell it was canceled, but after the Metropolitan Government’s park plan of Seoul came out, no company made an offer.

Songhyeon-dong is a real site in the center of Seoul. In terms of market prices, it is estimated to be at least 500 billion won. The opinion of the two sides did not narrow down by suggesting to Korean Air with 467 billion won, which is below the market price, and saying it will also pay in installments by 2022.

Reporter Oh Won-seok [email protected]