The Seoul Central District Court ruled that the South Korean government must pay 580 million won to a construction firm that participated in the renovation of the presidential residence in Hanam-dong during the Yoon Suk Yeol administration.
On October 13, the court's Civil Division 18, led by Judge Ryu Seung-woo, partially ruled in favor of construction firm A in its lawsuit against the government, ordering the state to pay the firm 58.5 million won along with delayed interest and 60% of the litigation costs.
Firm A was involved in the renovation of parts of the presidential office, the security office's residence, and a screen golf facility within the Hanam-dong residence at the request of the presidential security service shortly after Yoon Suk Yeol was elected in April 2022. However, after failing to receive part of the payment, the firm filed a lawsuit in November 2024, claiming approximately 900 million won in unpaid construction fees.
During the legal proceedings, both parties were in strong disagreement over the validity of the contract and the payment obligations. Firm A argued that a representative from the security service promised to pay the fees the following year due to budget constraints, but this promise was not fulfilled. Conversely, the government contended that the contract was invalid because Firm A did not comply with the requirements and procedures outlined in the national contract law.
Previously, the court attempted to mediate the dispute by recommending that the government pay Firm A about 700 million won, but the government objected, leading to a formal trial that culminated in the ruling announced today.
* This article has been translated by AI.
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