Korean Camko City Project before Phnom Penh Court

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Korean Camko City Project before Phnom Penh Court

Post by CEOCambodiaNews »

June 15, 2019
Appeal Court delays a controversial case of Korean Camko City Project
The Appeal Court on Friday postponed the trial of a controversial lawsuit related to a South Korean investment project, the development of Camko Satellite City on the outskirts of Phnom Penh.

The suit was filed in June 2016. The courts of first and second instance ruled in favor of the plaintiffs. However, the Supreme Court remanded the case twice and it is now pending in the Appellate Court.

The chief judge Seng Sivutha decided to delay the hearing to June 27, after two among the five judges were absent although lawyers of relevant parities were present.

“Two judges could not make it today. One is sick and the other one, her mother just passed away. It’s too sudden so I could not find a replacement. I have to postpone the trial,” he said.

A high-profile South Korean lawmaker Chun Jae-Soo appeared at Court, along with Korean Ambassador to Cambodia Nakyoung Oh, Korean prosecutors, and officials represented Korea’s Busan City.

Speaking to reporters, Mr Jae-Soo said the suit is not about private companies but it concerns both Korean and Cambodian governments, noting that it is now affecting the public at large.

“We hope that the Appeal judges would provide justice for 38,000 Korean victims,” he said. “As a member of the Korean National Assembly, I will work with Korea Deposit Insurance Corporation (KDIC) to push for Camko City project to return to normalcy.”

The Camko City project was initiated in 2005 by a Korean company – Landmark Worldwide (LMW) and its local constructor, World City; both headed by Lee Sang-hoo, in cooperation with Phnom Penh City to build advanced residential buildings on a 120-hectare plot of land northwest of Phnom Penh City.

Mr Jae-Soo said because LMW had very little equity capital, the project relied greatly on loans from subsidiaries of the Busan Savings Bank Group in Korea.

He said LMW borrowed nearly KRW 250 billion from Busan Savings Bank and other entities (The amount grew to KRW 650 billion including interests as of May 2019).

Mr Jae-Soo noted that since 2010, Mr Lee has not paid back even a penny of the borrowed money. As a result, nearly 38,000 depositors of the now-defunct Busan Savings Bank still have not received their deposits back.

“Mr Lee is now being hunted by Interpol police in order to deport him back to Korea,” he added, this issue has attracted close scrutiny from Korea’s National Assembly, the government as well as its judiciary.

In a statement obtained yesterday, the lawsuit claims that the business agreement should be terminated and that the Korea Deposit Insurance Corporation should return a 60 percent equity interest in World City that is currently under its management as receiver of Busan Savings Bank to Mr. Lee.
https://www.khmertimeskh.com/50614480/a ... y-project/
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Re: Korean Camko City Project before Phnom Penh Court

Post by CEOCambodiaNews »

Point of view from World City posted in today's Khmer Times:

June 18, 2019
World City lays down the truth on Camko City

We, World City, highly appreciate the Royal Government of Cambodia and our beloved citizen for the support given to our CAMKO CITY Project.

Lately, a group of Koreans who tried to impose their personal and political interest went to Phnom Penh Court of Appeal to pressure the Court and deliver fake information to damage our company.

In order to protect our reputation and project advancement, it is with sadness that we have no choice but to reveal such a scandal related to the project to the public to ensure that a free and fair judgment is finally rendered.
Image

According to an interview by a South Korean congressman Jeon Jae-su, who attended the Share Return case at the Appeals Court in Phnom Penh on 14 June 2019 between Korea Deposit Insurance Corporation (KDIC) and World City, he emotionally appealed to the court about the damage of the victims of the Busan Savings Bank and urged the court to make favorable decisions. He stated that the illegal loan which was the tearful deposit by ordinary people at the bankrupt Busan Savings Bank, temporarily administered by KDIC, was invested in the Camko City project and he insisted that Mr. Lee, CEO of World City, should be excluded from the project and KDIC should take over and propel the project to collect $600 million worth of bonds. All the claims by Mr. Jeon Jae-su are not true, and groundless, and we wish to clarify as follows:

World City does not have any loan relationship with Korea Deposit Insurance Corporation (KDIC), an administrator of bankrupt Busan Savings Bank at all. Our sole creditor is LandMarkWorldwide Co., Ltd. (LMW). In fact, before its bankruptcy in 2011, Busan Savings Bank provided loan to LMW for a specific amount but we have only obtained the loan from LMW with the current total amount of around $137 million, and the loan payback date has not matured yet.

As a project holder in Cambodia, it is not our business to get involved in the loan dispute between Busan Savings Bank and LMW. However, it is unacceptable that KDIC has come to us asking for a payment of around $600 million directly to it when there is no loan relationship between our company and it!! Even so, to try to resolve the dispute, we have proposed many times to KDIC that we may pay back a proper claim instead of LMW to KDIC. However, all our official requests have gone missing and nonsense requests are always made by KDIC. Evidently, we have proposed to negotiate with KDIC several times in the past few years for the debt settlement and repayment but KDIC declined all proposals, including World City’s proposal to give 50ha land in Camko City (worth about $500 million) instead of cash. Mr. Jeon Jae-su also claimed that the principal provided by Busan to LMW is around $200 million (assuming his claim is true) but KDIC is seeking for the principal and interest of around $600 million from LMW without considering the failure of Busan Savings Bank in fulfilling its obligation due to its insolvency. As a non-related party to the loan matter between Busan Savings Bank and LMW, we believe that our request to end all the disputes related to this project by providing our land, valued almost three times the loan principal, is the most proper proposal that KDIC should accept.


More here: https://www.khmertimeskh.com/50615251/w ... amko-city/
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