Court: "No Issues with Incheon Airport Corporation Sky72 Golf Course Bidding"

Summit, Rejected in Bid, Loses Lawsuit Over 'Invalidation of Bid Winner Decision'

Sky72 Golf Club Ocean Course Hole 12 Overview

[Asia Economy Reporter Park Hyesook] A court ruling has confirmed that there were no issues with the bidding process for selecting the successor operator of the Sky72 Golf Course managed by Incheon International Airport Corporation.

The 16th Civil Division of the Incheon District Court (Presiding Judge Kim Jeongsuk) ruled on the 7th against Summit Co., Ltd., which filed a lawsuit last October against Incheon Airport Corporation seeking to nullify the decision of the successful bidder for the Incheon Airport golf course and to confirm its status as the successful bidder.

Incheon Airport Corporation, ahead of the expiration of the implementation agreement with the private golf course operator Sky72 Golf & Resort Co., Ltd. on December 31, 2020, selected the KMH Shilla Leisure Consortium through a public announcement in September last year for the selection of a golf course lease operator in the Sinbul area and the planned 5th runway area. Subsequently, a contract was signed with Shilla Leisure in October last year.

Summit, which ranked third in the bidding, filed the lawsuit claiming that the corporation had oddly structured the evaluation formula to favor a specific company for the operation rights of Sky72 and asserted that they were the rightful successful bidder.

At that time, Summit CC proposed an annual lease fee of 48 billion KRW, which was higher than the 43.9 billion KRW proposed by Shilla Leisure. This raised concerns in political circles and elsewhere that the process violated the National Contract Act, which stipulates that the highest bidder in a competitive bid should be awarded the contract.

The corporation countered that the lease fee amount was based on the assumption of operating for only one year without considering the operational performance over the entire lease period, and that the estimated lease fee over the full lease term (10 years for Sinbul area and 3 years for the 5th runway planned area) was highest for Shilla Leisure.

On this day, the court dismissed both the principal claim to nullify the existing successful bidder decision by Incheon Airport Corporation and confirm Summit as the successful bidder, and the alternative claim to declare the bidding invalid, thereby ruling in favor of Incheon Airport Corporation.

The corporation welcomed the ruling, stating, "The court made a rightful judgment regarding the arbitrary claims of the unsuccessful bidder."

It added, "We conducted a fair and transparent selection of the successor operator through an open competitive bidding process in accordance with the National Contract Act and related laws. We hope that this ruling will bring a swift end to the unfounded speculations such as the 'planned bidding' allegations."

Kim Kyung-wook, President of Incheon International Airport Corporation, and other corporation officials are holding a press conference condemning the unauthorized occupation of the Sky72 Golf Course at the entrance to the Sea Course in Yeongjongdo, Incheon, shouting slogans. 2021.4.1 / Yeongjongdo Photo by Kim Hyun-min kimhyun81@

Regarding the selection of the successor operator for Sky72 Golf Course, a civic group in Incheon has filed a public interest audit request with the Board of Audit and Inspection, alleging that Incheon Airport Corporation orchestrated the bidding to favor a specific company. The related audit is currently underway. This ruling is expected to influence the audit by the Board of Audit and Inspection.

Meanwhile, despite the expiration of the implementation contract with Incheon Airport Corporation at the end of last year, Sky72 Golf & Resort continues to occupy 3.64 million square meters (1.1 million pyeong) of Incheon Airport land without authorization for nine months, demanding recognition of ownership of the golf course facilities and continuing operations.

Earlier in July, the Incheon District Court ruled in favor of Incheon Airport Corporation in a lawsuit seeking the return of the Sky72 golf course land and transfer of real estate ownership.

Additionally, the court dismissed the lawsuit filed by Sky72 seeking confirmation of the obligation to negotiate an extension of the land use period. Notably, the court also rejected Sky72's claims for the right to purchase above-ground structures and reimbursement for beneficial expenses. Sky72 has appealed the ruling, and the appellate trial is currently ongoing.

This content was produced with the assistance of AI translation services.