[Exclusive] "Don't Cross My Land": Yangjae Logistics Complex Remains Idle for 10 Years Amid Chaebol Family Feud

[10-Year Urban Logistics Stalemate] ①
Yangjae Urban High-Tech Logistics Complex Development Plan
Harim vs. Hanbo: Legal Battle Over Land Use
First Trial Victory for Harim, but Hanbo Files Appeal

Editor's Note
The former Korea Freight Terminal site at 225 Yangjae-dong, Seocho-gu, Seoul, spanning 83,629 square meters, remains vacant even today. Once serving as a key logistics gateway for the Seoul metropolitan area, this site was expected to be reborn as an urban high-tech logistics complex in response to the rapid growth of e-commerce, but has stood idle for a decade. This is due to administrative and capital power struggles over the development of Seoul's last prime real estate. Meanwhile, major e-commerce platforms like Coupang have established logistics centers at key locations near Seoul, ushering in the era of dawn delivery. Contrary to the original policy goal of strengthening logistics competitiveness, soaring real estate prices have turned this symbol of innovative logistics into an outlet for the desire to believe in the "myth of invincible real estate."

Harim Group's long-awaited project, the "Yangjae Urban High-Tech Logistics Complex" (Yangjae Logistics Complex), has not even broken ground after 10 years, and it has now been confirmed that the company is engaged in a legal dispute with a landowner near the site. Even if Harim obtains final construction approval, predictions suggest that groundbreaking will be virtually impossible unless this lawsuit is resolved.

According to The Asia Business Daily's investigation on May 7, for Harim Group to construct the Yangjae Logistics Complex on the 83,629-square-meter (approximately 25,000 pyeong) site at 225 Yangjae-dong, Seocho-gu, Seoul, they must conduct "underground excavation" work that encroaches on adjacent land (449 and 449-1 Yangjae-dong). Underground excavation involves digging below the surface to lay the foundations for buildings or structures, a process that secures a safe workspace while preventing the collapse of surrounding ground.

Harim Industrial, the owner of the development site, began negotiations in February 2024 with neighboring landowners for the underground excavation after Seoul City approved the Yangjae Logistics Complex plan. However, the children of the late Hanbo Group chairman Chung Tae Soo, who own the neighboring land, objected to the work. As a result, Harim Industrial filed a lawsuit in 2024 against Chung's son, Chung Han Geun, and others, demanding the right to use their land. Harim Holdings owns 100% of Harim Industrial's shares.

The first trial ruled in favor of Harim Industrial. On February 25, the Seoul Central District Court stated, "Use of the defendants' (the Hanbo family's) land is inevitable for the related work," and rendered a judgment for the plaintiff. The court found that, under Article 216, Paragraph 1 of the Civil Act (the right to claim use of neighboring land), it was unavoidable to temporarily use adjacent land. This right allows one to temporarily use neighboring land when constructing, expanding, or rebuilding a building. The court also noted, "Once the underground construction is completed, the land can be fully restored to its original state, and the damages or inconvenience to the defendants caused by the land use are not expected to be unbearable."

However, it has been confirmed that the Hanbo family appealed the ruling in March.

Previously, in May 2016, Harim purchased the site for 452.5 billion won to develop the Yangjae Logistics Complex. The plan was to build a mixed-use logistics complex with 58 stories above ground and a total floor area of approximately 1.47 million square meters, including residential units, office buildings, and commercial facilities, with the goal of breaking ground in the first half of this year.

However, the Seoul City Architecture Committee put a brake on the project in March by deciding to re-examine Harim Industrial's logistics complex plan. The reason cited was that the exterior of the core commercial spaces—where shopping malls, hotels, and restaurants would be located—could appear as a massive barrier.

Even if the project passes Seoul City's architectural review, further delays in groundbreaking seem unavoidable should the lawsuit with the Hanbo family drag on. This lawsuit could have a significant impact on the city's final excavation review, which is the last step before construction. For construction work such as underground excavation, the project must undergo an excavation review, in which damage to surrounding land and related litigation are major evaluation factors. A Seoul city official stated, "It is necessary to ensure that no damage is inflicted on neighboring properties. The appropriate construction method must be submitted, and if it is not, a decision for re-examination in the excavation review may be issued."

Harim stated, "Construction can proceed sufficiently, excluding the portion of the defendant's land. The part of the Yangjae Logistics Complex site that is adjacent to the neighboring land is minimal, so such issues cannot delay or hinder the project. If the stability of the adjacent land is not taken into account, construction can proceed fully using alternative methods, so this lawsuit and the construction are entirely unrelated."

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