[Alpha Biz= Paul Lee] A South Korean court has ordered the provisional seizure of certain assets of rolling-stock manufacturer Dawonsys, which has been embroiled in disputes with Korea Railroad Corporation (Korail) over delayed train deliveries and excess weight issues.

According to legal sources on the 26th, the Daejeon District Court recently approved, on two occasions, Korail’s applications for provisional attachment of Dawonsys assets, including accounts receivable worth KRW 3.9 billion and real estate valued at KRW 12 billion, totaling five items.

Korail previously filed a damages claim in September last year, arguing that delays in the delivery of Dawonsys’ ITX-Maum trains and the trains’ weight exceeding design specifications resulted in losses, including costs for detailed safety inspections of aging passenger cars and additional maintenance expenses.

Korail had requested that the ITX-Maum trains—intended to replace the Mugunghwa-ho service—be manufactured at 190 tons per half-trainset. However, the delivered trains were designed at 205 tons, forcing Korail to limit standing passengers to about 50% of the originally planned level. Korail estimates this led to fare revenue losses exceeding KRW 10 billion.

Korail also maintains that Dawonsys bears liability for maintenance and management costs incurred because aging Mugunghwa-ho trains could not be replaced on schedule.

In addition to the civil dispute, Korail and the Ministry of Land, Infrastructure and Transport have filed criminal complaints related to the delayed deliveries.

In a disclosure following the court’s decision, Dawonsys said the provisional attachment does not reflect a final judgment on its liabilities. “This is a preservative measure arising in the course of ongoing principal litigation with the creditor,” the company said, adding that “core business operations, including factory operations, product manufacturing, and deliveries, are proceeding without disruption.”

 

 

 

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