BKL Advised Berjaya Group for Securing Damages from the Suspended Construction of a Jeju Yerae Residential Resort Complex
BKL has successfully completed the recovery of damages due to the suspension of the resort and casino development project in Jeju Island for the Malaysian Berjaya Group.
Following Jeju International Free City Development Center (“JDC”)’s active solicitation of foreign investment, Berjaya Group commenced a development project and established Berjaya Jeju Resort (“BJR”), through which it intended to obtain the relevant approvals and acquire the land for the project from JDC. In 2015, after investing hundreds of millions of dollars, JDC was not able to transfer the ownership of the land and the relevant development project had to be discontinued.
BKL, retained for seeking recovery of loss as to the project, had provided BJR with the comprehensive action plan and acted as counsel in a lawsuit it initiated on behalf of BJR against JDC and relevant provincial authorities. During the litigation process, BKL represented BJR and made compelling arguments regarding JDC’s failure to perform its obligations, such as a breach of the land purchase agreement, and the JDC’s liability with respect to representations and warranties. BKL played a pivotal role in causing JDC to decide to resume negotiations regarding compensation with BJR and the case reached settlement in June 2020.
The project involved large-scale real estate development with estimated project costs totaling approximately USD 1.8 billion and was widely publicized in Korea as a successful case of attracting the largest amount of foreign investment in the tourism industry. In that regard, this case is of significance since BKL represented a foreign company that had made significant investment based on its reliance on the economic and legal foundation of Korea, and secured appropriate damages for BJR under the Korean legal system by providing comprehensive legal services in the areas of tax, accounting, and foreign exchange transactions in addition to the dispute resolution, although the project turned out to be a failure.