Asiana Airlines has won a final victory in a lawsuit over the ownership of the contract deposit received from HDC Hyundai Development Company during the process of pursuing the sale of the company.
The Supreme Court's Civil Division 1 (presiding judge Shin Sook-hee) confirmed on the 13th the lower court's ruling, which favored the plaintiffs Asiana Airlines and Kumho Engineering & Construction in their lawsuit for the expiration notice of collateral and damages against HDC Hyundai Development Company and Mirae Asset Securities. Accordingly, Asiana Airlines and Kumho Engineering & Construction are not required to return the contract deposit of 250 billion won received from HDC Hyundai Development Company and Mirae Asset Securities.
In 2019, HDC Hyundai Development Company decided to acquire Asiana Airlines for 2.5 trillion won in a consortium with Mirae Asset Securities. Subsequently, HDC Hyundai Development Company paid 250 billion won, which is 10% of the total acquisition amount, as a contract deposit to Asiana Airlines and others.
The conflict was triggered by the impact of the COVID-19 pandemic. HDC Hyundai Development Company demanded a reassessment, claiming that the circumstances for the acquisition had changed due to the spread of COVID-19. It also argued that the financial situation, including liabilities of Asiana Airlines, had changed since the time of the contract. However, the creditors did not accept HDC Hyundai Development Company's request for reassessment, expressing doubts about their intent to acquire.
Ultimately, the contract was completely terminated in September 2020. The two sides blamed each other for the termination of the contract, leading to conflicts over the contract deposit and entering a legal battle.
In November 2022, the first instance court sided with Asiana Airlines. The court stated, "While Asiana Airlines and others confirmed the specific meaning and scope of the reassessment of acquisition circumstances and renegotiation of acquisition conditions requested by HDC Hyundai Development Company, HDC Hyundai Development Company did not provide a specific response," concluding that there was no obligation to return the contract deposit of 250 billion won.
Last March, the second instance also maintained the first instance's decision, stating, "While it is recognized that the financial and operational status of Asiana Airlines and others has significantly deteriorated, it is due to the 'natural disaster' caused by COVID-19, which qualifies as an exception."