[Alpha Biz= Reporter Kim Sangjin] Woo Ki-won, the only son of SM Group Chairman Woo Oh-hyun and CEO of SM HiPlus, has become embroiled in a controversy over land acquisition and "land locking" in a redevelopment project in Seoul's Oksoodong district.
In June 2018, Woo Ki-won acquired four plots of land (totaling 752 square meters) in the Hanam Heights apartment complex in Oksoodong through auction for 527.7 million won. This was shortly after the area was designated as a redevelopment zone in 2017 and the project began in earnest with the establishment of the association in May 2018. The land that Woo acquired, with the exception of about 150 square meters used as the main entrance to the apartment complex, has little economic value, leading the redevelopment association to accuse Woo of buying the land with the intent to "land lock" – a practice where someone refuses to sell land in a development area and demands high compensation.
It is also alleged that Woo Ki-won demanded about 30 billion won, including half of the profits from the redevelopment, from the association to sell the land. Additionally, after acquiring the land, Woo Ki-won is said to have borrowed funds from group affiliates while transferring the debt to his personal company.
Alphabiz Reporter Kim SangJin(letyou@alphabiz.co.kr)
