NEW YORK, June 11, 2019 /PRNewswire/ -- The Gale
Investments Co., LLC (Gale), a U.S. family-owned real estate
development company, today announced that it has submitted a
notification of intent to arbitrate a $2+ billion dispute with the
Republic of Korea (Korea) at the World Bank's International Centre
for Settlement of Investment Disputes (ICSID) as a result of
contested actions by Korea relating to the development of the
$35 billion Songdo International
Business District (Songdo).
In 2001, Korea invited Gale and it's best-in-class partners to
spearhead the development of Songdo, a brand-new city and gateway
to Northeast Asia, which has
become an international model for smart-connected cities and
city-scale sustainable development. Korea instructed Gale to
partner with POSCO Engineering & Construction (POSCO E&C),
which is owned by POSCO Group (NYSE: PKX).
Songdo is the largest Korea-U.S. joint real estate venture ever
developed. Built on 1,500 acres of waterfront property, land
reclaimed from the West Sea, Songdo is located near Incheon
International Airport 40 miles southwest of Seoul. Today, Songdo boasts a landmark
sky-scraper - the Northeast Asia Trade Tower (the second tallest
tower in Korea), more than 20,000 residential housing units, a
retail mall, luxury hotels, a convention center modeled after the
iconic Sydney Opera House, an
arts, performances, and culture complex with waterfront views, the
world-class Chadwick International School, a 100-acre Central Park
reminiscent of the eponymous park in New
York City, Venetian-style canals, and a Jack Nicklaus
Signature golf course and clubhouse which served as the location
for the 2015 President's Cup.
"Gale achieved these remarkable results despite multiple
impediments raised by the Korean government, including seizing land
and profits and facilitating POSCO E&C's seizure of Gale's real
estate and development rights," said Gregory M. Williams, of Wiley Rein, LLP, lead counsel for Gale. "POSCO
E&C itself also overcharged hundreds of millions of dollars in
construction work and engaged in extensive violations of its
contractual and statutory duties to Gale. Korea expropriated a
substantial portion of Gale's investment in an unlawful manner and
unfairly and inequitably took from Gale the value of investments,
discriminated against Gale, conspired to divest Gale of its
investments, and used its public powers to harass and coerce Gale
into ceding valuable rights. Through these actions, Korea caused
Gale more than U.S. $2 billion in
damages," Williams added.
In response to POSCO E&C's conduct, Gale has commenced
arbitration at the International Court of Arbitration of the
International Chamber of Commerce (ICC) as well as initiated
proceedings in the U.S. District Court for Southern District of
New York (SDNY) (Case
1:19-cv-02498-JGK).
"Eighteen years ago, Gale International, my family-owned,
third-generation company was honored to be invited by the South
Korean Government to build an environmentally-friendly,
international destination that would serve as the gateway to the
Korean peninsula," said Stan Gale,
Chairman and CEO of Gale International. "This project has been the
culmination of a lifetime of work, transforming Korea's dream of
Songdo into a reality. In designing and developing that dream, our
team was inspired by two things of great importance to the people
and culture of Korea, education and golf. So, we built the
remarkable Chadwick International School and worked with our good
friend and partner Jack Nicklaus to
develop a beautiful Jack Nicklaus Signature golf course, which
served as the location for the 2015 President's Cup. I have a deep
admiration and appreciation for the Korean people, but I cannot let
POSCO E&C further damage my family's name and our business. We
are determined to resolve this matter and trust that the
reform-minded Administration of President Moon Jae-in will support the recovery of the
losses we incurred due to the actions of POSCO E&C and the
prior Government."
Arbitration before the ICSID requires a 90-day notification
period before official proceedings begin. Gale will issue regular
updates on this and the company's other actions.
About Gale International
Gale, established in New York
City in 1922, is one of the pre-eminent U.S. family owned
real estate development companies. With multiple projects
throughout America and the world, the company has achieved global
recognition as a best-in-class, full-service real estate business
and the foremost expert in smart, sustainable city-scale
development. http://www.galeintl.com/
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SOURCE Gale Investments Co., LLC