The conflict surrounding the contributed acceptance obligations of corporations residing in the Magok Industrial Complex is expected to come to an end. The corporations claimed that the contributed acceptance clause they negotiated upon entry was enforced; however, after losing the lawsuit, they settled on fulfilling the obligations.
According to a comprehensive report by ChosunBiz on the 9th, 50 corporations including Kiturami, Nexen, Austem, and Kolon Industries recently held discussions with the Seoul Business Agency, the managing organization of the Magok Industrial Complex, regarding the deadlines for fulfilling their contributed acceptance obligations. It is reported that the implementation period was set for this year, considering the corporations' funding needs.
In 2011, the city of Seoul established the Magok Industrial Complex over an area of 1,110,805㎡ (about 33,728.8 pyeong) in Magok-dong and Gayang-dong, Gangseo-gu. They revealed plans to develop this area into a convergence R&D (Research and Development) cluster for advanced technology corporations.
The following year, Kiturami, Nexen, Austem, Kolon Industries, and Daewoong Pharmaceutical signed residency contracts with the city of Seoul. At the time of the contract, corporations that purchased industrial site land of more than 1,650㎡ (about 500 pyeong) also agreed to a clause stipulating that they must contribute land equivalent to more than 5% of the land acquisition cost or facilities exceeding 9%.
The issue arose when Kiturami, Nexen, and Austem did not fulfill their contributed acceptance obligations due to financial burdens after moving in. In May 2022, the city of Seoul notified them of a corrective order stating, "If the contributed acceptance is not completed and results submitted by December 2022, we will proceed with the contract termination process for residency."
In August of the same year, the resident corporations filed a lawsuit requesting the cancellation of the corrective order, claiming that the city had forcibly included the contributed acceptance regulations at the time of the contract. They also submitted a request to stay the enforcement to prevent the corrective order and the residency contract termination process.
However, following the first and second trials, the Supreme Court ruled in April of this year that there were no issues with the contractual clause. It concluded that Kiturami and others must fulfill the contributed acceptance as per the existing contract.
Concerns have also been raised that since the buildings and infrastructure have already been completed, the corporations may not be able to hold out without fulfilling their contributed acceptance obligations. However, it is reported that the corporations conveyed their intention to the Seoul Business Agency, stating, "We respect the judgment results and will actively cooperate."
Multiple officials said, "If they do not fulfill the contributed acceptance until the end, the process for contract termination will proceed, and the corporations will have to sell the buildings and land and transfer them."
They added, "In this case, a lawsuit regarding the contract termination process may proceed, but currently, the corporations are in a cooperative attitude and are continuing negotiations."