The faltering Yongsan project, the nation’s single largest property project worth 31 trillion won ($29 billion), will likely be liquidated as the board of KORAIL gave consent Monday for the state-run rail operator to hand off the project.
The move of KORAIL, the largest shareholder of the project with a 25 percent stake in Dream Hub, a special purpose company in charge of Yongsan project decision, was expected last Friday as the board of Dream Hub, composed of 30 shareholders including KORAIL, rejected the self-rescue plan proposed by the rail operator.
After the board meeting, KORAIL also revealed details for the next steps of the liquidation process. It is expected to be completed by April 29, starting with return of payment for its land to Dream Hub from Tuesday.
The liquidation project is likely to bring a number of lawsuits, including a class action lawsuit raised by citizens living within the development area. Trade of their properties has been banned since 2010.