Han’s attitude decides fate of tenants in KOEX Mall

It is wondering how Han Duck-soo, chairman of the Korean Traders Associataion (KTA), would feel about the protests being waged by some 200 tenants of the
shops in the KOEX Shopping Mall under the wing of the KTA.  The tenants claimed that they had been unilaterally informed by KOEX Mall of the termination of  their lease contracts with no renewal of the contracts  last March. It was last February when Han, former prime minister, moved into the
KTA after serving as the Ambassador to the United States.

The notification must have been a bolt out of the blue sky for the tenants who are set to be thrown out of the stores, pillars of their living,  due to the decision. They formed a committee to cope with the situation and started protest, calling for the cancellation of the decision. The tenants also sent petitions to Chog Wa Dae, presidential office,  ruling and opposition parties.

According to the tenants, the company operating the KOEX Mall announced in April last year that the whole shopping mall will be fully remodelled by the first half of 2014. But, at that time, there was no talk about the matter concerning the renewal of the contracts. So, the tenants thought it a matter of course to be able to renew their contracts and looked forward to the remodelling.

However, the KOEX Mall sent the letter refusing renewal of the contract last March, a year later. Facing harsh protests from the tenants, the KOEX has come to assuage the angry merchants by saying that they would seek a way of giving additional points for current tenants to give them advantage in the screening to select new tenants after the remodelling.  It also said that their decision was made as a move to root out the illegal practice among the tenants of doubly leasing their shops to others.

But, the tenants continue to protest, saying that the promise of allowing additional points for the present tenants was nothing but a ploy to calm down excited merchants with no substantial effect for them in the actual screening. They criticized that it is no other than an act of threatening the lives of the concerned merchants.

The discontents of the tenants have been mounting because the KOEX paid no heed to their call for the dialogue. The protests have become harsher and come to the stage of asking Han to step down. In the face of the protests, the KTA claims that it has nothing to do with the matter because the remodelling is being pushed ahead by the KOEX.

However, it is ridiculous for KTA to try to pass the buck to KOEX Mall which is under its direct control. Everyone knows that major decisions concerning the operation of the KOEX Mall are being made by the KTA. The remarks by former KTA head Sagon-il that “it’s regrettable for me not to be able to turn the KOEX Mall into a world-class shopping center during my tenure,” support the fact.

Han may feel unfair for being criticized because of the project launched by his predecessor. He may also think that there is nothing wrong for KTA in their decision not to renew the lease contracts with current tenants from the legal point of view. However, considering his ability to persuade people nurtured through his long work in the field of trade and negotiation with foreign countries, he has to come forward in the talks with the representatives of the merchants.

The KTA, one of the largest public organizations, may consider the matter a tiny thing. But, it is not a small matter for 200 tenants and about 1,300 employees as well as about 1,000 their family members. It is a crucial matter concerning their future livelihood. It is time for Han to display his ability. He has to make every possible effort to minimize the possible property damage to be incurred on the part of the merchants due to the remodelling.