Yeonggwang Combined Heat and Power Plant Halted Three Months Before Completion Amid Corporate Takeover Controversy

Yeonggwang Combined Heat and Power Holds Emergency Press Conference on the 14th
Court Grants Injunction to Delay Construction Suspension, but Contractor Remains Unresponsive
Unlawful Corporate Takeover Attempts... All Legal Measures to Be Mobilized

Employees of Yeonggwang Combined Heat and Power Co., Ltd. held a press conference on the 14th demanding the withdrawal of the construction suspension against the construction company of Yeonggwang Combined Heat and Power Plant. Provided by Yeonggwang Combined Heat and Power Co., Ltd.

The construction project for a solid refuse fuel (SRF) combined heat and power plant, worth approximately 100 billion won, currently underway in Yeonggwang, South Jeolla Province, is losing direction amid unprecedented controversy over alleged corporate takeover.

On October 14, Yeonggwang Combined Heat and Power Co., Ltd., the project owner, held a press conference and strongly criticized the construction company, Techcross Water & Energy (hereafter referred to as Techcross), and its parent company, Bubang Group, demanding that they "immediately cease their unscrupulous attempts to usurp business rights."

Yeonggwang Combined Heat and Power Co., Ltd. signed a contract with Techcross in 2019 and has been constructing the SRF combined heat and power plant in Yeonggwang-gun, South Jeolla Province. However, just three months before completion, the project was halted at 83.3% progress in April 2024, after Yeonggwang-gun issued a suspension order citing failure to complete the environmental impact assessment.

Yeonggwang Combined Heat and Power Co., Ltd. claims that the root cause of this situation lies in Techcross's deliberate suspension of construction and subsequent breach of the construction contract. After filing for an injunction to delay the suspension, the court granted the request, and based on this, Yeonggwang Combined Heat and Power Co., Ltd. requested Techcross to resume construction. However, Techcross did not comply.

In fact, Yeonggwang Combined Heat and Power Co., Ltd. stated, "Even though the Gwangju District Court suspended the effect of the construction halt order, the construction company engaged in actions that effectively obstructed the project, such as notifying subcontractors of contract termination, removing equipment from the site, and cutting off electricity and water supply."

The company further pointed out, "According to Articles 5, 7, and 46 of the construction contract, all permits and approvals, including the environmental impact assessment, are clearly specified as the responsibility of the construction company," and added, "Both the suspension of construction and the failure to receive progress payments are due to the construction company's non-fulfillment of its obligations."

According to litigation documents submitted to the court, several documents, including the construction contract and project financing loan agreement, explicitly state that Techcross is the party responsible for 'completion' and 'operation.' Nevertheless, Yeonggwang Combined Heat and Power Co., Ltd. asserts that Techcross failed to fulfill its contractual obligations and attempted to seize business rights.

On the other hand, Techcross is reportedly asserting the legitimacy of the construction suspension and contract termination, arguing that "the period for suspension of the construction halt order is too short, and if work resumes only to be halted again, the cost burden will increase."

Meanwhile, Yeonggwang Combined Heat and Power Co., Ltd. believes that Techcross's actions go beyond the scope of simple contract termination and constitute an abuse of rights, potentially leading to criminal liability for obstruction of business by fraudulent means and fraud.

A representative of Yeonggwang Combined Heat and Power Co., Ltd. stated, "Despite the contract clearly stipulating completion, operation, and the assumption of excess costs, the deliberate suspension of construction, subrogation, and execution of stock collateral in an abnormal manner to seize the plant and the company is clearly illegal. We will never overlook the illegal corporate seizure attempts by Techcross and its parent company, Bubang Group, and will respond with all available legal means."

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