Suwon City Files 1.5 Billion Won Lawsuit Against Korea Electric Power Corporation

Suwon City has filed a lawsuit demanding the return of 1.5 billion won in underground power line relocation costs paid to Korea Electric Power Corporation (KEPCO) in connection with the development of Suwon Industrial Complex Phase 3.

During the process of coordinating with KEPCO on the underground installation of power transmission lines for Suwon Industrial Complex Phase 3, the city requested the relocation and demolition of utility poles on the project site in November 2009.

KEPCO claimed approximately 1.5 billion won based on the cost-bearer principle under Article 72 (relocation of facilities, etc.) of the Electricity Business Act, and the city paid this amount in March 2010.

At that time, the land was owned by the state (Ministry of Food, Agriculture and Fisheries, etc.). The city, as a provisional landowner, paid the relocation costs for utility poles on the assumption that the state-owned enterprise KEPCO had obtained lawful use rights.

However, in September when free transfer was completed, the city belatedly confirmed the unauthorized use of the land and raised questions about KEPCO's improper claims.

Based on the results of an internet inquiry to the Ministry of Knowledge Economy regarding the cost-bearer for unauthorized utility pole relocation, the city requested that KEPCO return the funds. KEPCO, however, took the position that reimbursement was not possible.

Consequently, the city is pursuing recovery of approximately 1.5 billion won in relocation costs obtained without legal basis through an unjust enrichment lawsuit based on legal advice from a consulting attorney.

Depending on the outcome of the lawsuit, if the city recovers the relocation costs for unauthorized utility pole use, the ripple effects nationwide are expected to be substantial.

An official from Suwon City's Public Development Division stated, "We will carefully review various charges claimed by KEPCO according to different project types to ensure there is no wasted budget, and we plan to seek measures for business cooperation and system improvements to prevent recurrence, as we believe this situation is the same nationwide."

A representative from KEPCO's Seosuwon branch responded, "We have already sent an official document to Suwon City based on legal grounds regarding this matter. Since this was implemented based on the law, there should be no issues."

Meanwhile, Suwon City is proceeding with the development of Suwon Industrial Complex Phase 3, targeting completion in March 2013, focusing on core advanced technology sectors such as IT and BT.