KT "Pangyo Building Construction Cost Settlement Completed"...Lawsuit Filed Against Ssangyong Construction

KT has filed a lawsuit against Ssangyong Construction after failing to reach an agreement on the increase in construction costs for its new headquarters in Pangyo, Gyeonggi Province.

On the 10th, KT announced that it had filed a suit at the Seoul Central District Court seeking confirmation of non-existence of debt against Ssangyong Construction, a member of the Global Sea Group.

In 2020, Ssangyong Construction won the contract to build KT's new headquarters for 96.7 billion KRW and had been carrying out the construction. However, in July 2022, citing rising raw material prices due to COVID-19 and the Ukraine war, Ssangyong requested an additional 17.1 billion KRW in construction costs. The building was completed last spring.

KT rejected the request, citing a "price fluctuation exclusion clause" in the construction contract that stipulates no adjustment of construction costs due to price changes. In response, Ssangyong Construction applied for mediation with the Construction Dispute Mediation Committee of the Ministry of Land, Infrastructure and Transport in October last year.

KT explained, "Through this lawsuit, we want the court to confirm that we have fulfilled our obligations by paying all construction costs to Ssangyong Construction and that there is no obligation to pay additional costs."

They added, "During the construction process, we made early payments of construction costs at Ssangyong Construction's request, accepted an additional 4.55 billion KRW for construction cost increases due to design changes and paid that amount as well. We also accepted a 100-day extension request for the construction period, and all settlements of construction costs with Ssangyong Construction, including these, have been completed."

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