The International Convention Center Jeju is at odds with the Korea Tourism Organization over KTO's policies.

The KTO says that it is entitled to its share in the increase in land values stemming from the ICC’s development of the island’s second convention center.

ICC Jeju and the province responded that there are no legal grounds for this claim.

Joseph Kim reports.

[slug] Jungmun-dong, Seogwipo

There used to be a circus theater on this 39,000 square meter parcel of land located in (중문) Jungmun-dong, Seogwipo.

[slug] ICC Jeju plans to build 2nd convention center

International Convention Center Jeju bought the land from the Korea Tourism Organization in December 2017.

ICC Jeju is going through the process of constructing its second convention center on the land.

It is planning to finalize designs of the building by July and initiate the construction beginning December this year.

But there will likely be a glitch in the plans due to the dispute with the Korea Tourism Organization.

[slug] KTO Jeju branch wants 25% of profits from increased property values

The land value has increased after the alteration of land use.

The KTO sent an official letter asking ICC Jeju to pay for 25 percent gains from the increase in land values.

[slug] KTO plans to reinvest in Jungmun Tourist Complex

The KTO managing the (중문) Jungmun Tourist Complex says that the request is based on its operational policies set in 2005 and collected funds are reinvested in the complex.

Ko Yun-cheol / Jeju Office, KTO
Regulations must be equally applied to all businesses within the complex.
ICC Jeju cannot be an exception.
< 고윤철 / 한국관광공사 제주지사 차장 >
사업시행자 지침으로 결정된 것이라서 중문관광단지에 입점해 있는 다른 민자업체와의 형평성을 고려해볼 때라도 납부해야 되지 않냐는 게 저희 입장입니다.

Meanwhile, ICC Jeju says the demand is unjustified.

[slug] ICC Jeju refutes KTO’s claims

ICC Jeju responded that the ownership of the land has been transferred to ICC Jeju, therefore there are no legal grounds for the request of additional payment.

Jeong Jong-hun / Representative, ICC Jeju
KTO should abide by rules as a public enterprise. Its demand for a share in profits lacks legal basis.
< 정종훈 / 제주국제컨벤션센터 경영기획실장 >
공공기관으로서 기본적으로 법률과 원칙을 기준으로 업무를 수행해야 하는데 법률적 근거 없이 토지 상승분을 요구하는 자체가 부당하다고 보고 있습니다.

[Reporter] Joseph Kim
[Camera] Hyeon Gwang-hoon
The conflict between the two sides is growing tense.

The KTO says the request is not fully legally justified, but the organization’s operational rules are also rules to follow.

[slug] Province refers to KTO’s request as ‘unlawful’

Meanwhile, the province has reviewed the KTO's money collecting practice for the increased land value from businesses inside the Jungmun Tourism Complex and says that it could possibly be unlawful.

Opposition from businesses that have paid the KTO for years is expected to grow stronger.

Joseph Kim, KCTV