Exclusive
Oh Chi-hoon, Chairman of Daehan Steel, Completes Compensation Agreement for Gadeokdo New Airport Site

[비즈한국] It has been confirmed that Oh Chi-hoon, Chairman of Daehan Steel084010, has transferred land he owned at the site designated for the Gadeokdo New Airport to the government. The Busan Metropolitan Government has been conducting loss compensation consultations for land near the Gadeokdo New Airport since last June. It appears that Chairman Oh has realized a profit of at least several hundred million won. Chairman Oh is the nephew of former Busan Mayor Oh Keo-don, who pushed for the Gadeokdo New Airport project, which has led to persistent controversy over conflicts of interest (Related article: 'Past Conflict of Interest Controversy' Daehan Steel Chairman Oh Chi-hoon Still Owns Land Near Gadeokdo New Airport).

The land previously owned by Chairman Oh is located in Daehang-dong, Gangseo-gu, Busan, and covers an area of 1,488㎡ (approximately 450 pyeong). It is known that Chairman Oh purchased the land in 2005 for approximately 150,000 won per ㎡ (500,000 won per pyeong). Based on a simple calculation, the total purchase price is estimated to be between 200 million and 300 million won.

The Busan Metropolitan Government announced that it began loss compensation consultations in June for land and properties to be incorporated into the Gadeokdo New Airport construction project. The land subject to compensation consists of 379,074㎡ (approximately 114,670 pyeong) of private property near the Gadeokdo New Airport site, with a total estimated compensation amount of approximately 470 billion won. The compensation amount was calculated through land appraisals.

According to BizHankook's investigation, it was confirmed that Chairman Oh Chi-hoon also completed the consultation and transferred his land to the state. The specific compensation amount was not disclosed. A representative from the Busan Metropolitan Government stated, "We do not disclose individual compensation amounts as they are personal information."

According to the Ministry of Land, Infrastructure and Transport, the most recent officially assessed land price for the property formerly owned by Chairman Oh is 552,000 won per ㎡. Applying this rate, the total value of the land he held is 821.376 million won. Based on the official land price, Chairman Oh has earned a profit of approximately 500 million won. However, the actual compensation amount is likely to be higher. Records show that land in Daehang-dong was traded at approximately 2.54 million won per ㎡ in February of last year, and at 1 million won per ㎡ as recently as August of this year.

Chairman Oh Chi-hoon is the nephew of former Busan Mayor Oh Keo-don. The Gadeokdo New Airport was a key campaign promise of former Mayor Oh. Because of this, the fact that Chairman Oh Chi-hoon owned land near the project site sparked ongoing conflict of interest controversies. In 2021, former People Power Party lawmaker Yoo Seong-min criticized this on social media, stating, "Since the Gadeokdo New Airport was a signature pledge of former Mayor Oh Keo-don, the land purchase by the former mayor's family cannot avoid suspicions of speculation."

BizHankook contacted Daehan Steel to hear their stance on the matter but did not receive a response.

Separate from Chairman Oh Chi-hoon’s actions, the construction of the Gadeokdo New Airport is facing difficulties. Hyundai E&C000720 withdrew from the construction consortium citing construction period and cost issues, and POSCO E&C also recently halted its participation in the consortium due to emerging safety concerns. While the government says it will find a new contractor, the delays make the original target of opening in 2029 realistically difficult.

Minister of Land, Infrastructure and Transport Kim Yun-duk visited the Gadeokdo New Airport site on August 7 and stated, "Since this is a government-decided matter, we will find a wise way to keep our promise to the public," adding, "We will actively seek ways to expedite the process."