SM Hi-Plus CEO Woo Ki-won, the second-generation leader of SM Group, has become embroiled in controversy over alleged "land grabbing" after purchasing part of the redevelopment site for Hannam Heights Apartments in Oksu-dong, Seongdong-gu, Seoul.
"Land grabbing" refers to a real estate speculation tactic in which land slated for redevelopment or development is preemptively purchased, with the intent to sell it later at a high price.
According to a report by Chosun Biz on the 6th, CEO Woo won an auction in 2018 for four plots of land, including the main entrance to the Hannam Heights Apartments.
At that time, Hannam Heights had just received approval for establishing a redevelopment association, marking the beginning of active redevelopment efforts.
Residents have expressed dissatisfaction, questioning whether Woo purchased this land with the intent of land grabbing just before the redevelopment project gained traction.
The plots acquired by Woo originally belonged to Jungang Industry. However, after Jungang Industry went bankrupt, ownership was transferred to KAMCO (Korea Asset Management Corporation).
Subsequently, the plots went up for auction, and Woo acquired them for 527.7 million KRW.
This land comprises the main entrance area, used as the primary access point to the apartments, along with several small plots that are difficult to utilize individually.
Currently, the land is encumbered with a 480 million KRW mortgage set by Kwangju Bank and another mortgage of approximately 5.1 billion KRW by SM Line, an SM Group affiliate.
SM Group has estimated the value of the four plots at around 8 to 10 billion KRW and is considering putting them back on the market through an auction rather than selling them to the association.
Additionally, SM Group announced plans to donate the capital gains from the auction to society in the form of a contribution via a group foundation.
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SM Group Chairman Woo Oh-hyun's Son Sparks Controversy Over Hanam Heights Redevelopment 'Land Grabbing'
SM Hi-Plus CEO Woo Ki-won, the second-generation leader of SM Group, has become embroiled in controversy over alleged
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