Unauthorized Operation of Hangang Franchise Convenience Store... Must Compensate Seoul City 6.1 Billion Won
Response to Unauthorized Occupation by Hangang Park Concession Operators
Two Large Convenience Stores Targeted... Six-Year Lawsuit Concluded
Compensation Covers Illegal Business Losses... Active Future Measures Planned
The Seoul Metropolitan Government has won the final lawsuit against the operators of temporary stores who continued unauthorized business at the Han River kiosks. The total compensation secured by Seoul amounts to 6.1 billion KRW, which is expected to significantly contribute to the city's financial resources.
On the 21st, Seoul announced that it won both of the two damage compensation lawsuits against the consortium of temporary store operators who continued unauthorized business at the Han River kiosks after their operating contracts expired six years ago, as well as against the headquarters of a major franchise convenience store, securing a total of 6.1 billion KRW in compensation.
Previously, Seoul had signed contracts with the two consortium companies in 2008 and 2009 to establish kiosks at the Han River and operate them for eight years, after which the facilities would be returned to the city. However, in 2016 and 2017, despite the expiration of the kiosk operation permits, both consortium companies continued to operate illegally for about a year.
In response, Seoul took active measures such as evicting the companies that continued unauthorized operations after the contract ended and reclaiming the kiosks for the city. Additionally, the city filed damage compensation claims for the unjust profits gained from illegal operations, and at the end of last year, the Supreme Court ruled that both companies must pay damages to the city.
Hot Picks Today
Seoul stated that the 6.1 billion KRW compensation secured will be used to cover losses caused by the illegal operations of the operators six years ago and to benefit the citizens. Beyond this lawsuit, the city plans to actively respond to unauthorized occupancy after the expiration of Han River kiosk permits through lawsuits and imposition of compensation fees. Joo Yong-tae, head of Seoul’s Future Han River Headquarters, said, "Administrative properties operated with citizens' taxes must be managed for the benefit of the citizens," and added, "We will continue to thoroughly respond to illegal acts by private operators in accordance with laws and principles."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.