Tokyo court approves Chongryon HQ sale to developer Marunaka

JIJI

The Tokyo District Court gave permission Monday for the Tokyo headquarters of the General Association of Korean Residents in Japan, a pro-Pyongyang entity better known as Chongryon, to be sold to real estate developer Marunaka Holdings Co.

Chongryon has already appealed the decision.

Marunaka Holdings, based in Takamatsu, Kagawa Prefecture, will pay ¥2.21 billion for the group’s office building and land in Chiyoda Ward.

The company submitted a bid purely for investment purposes and has no plans to lease it to Chongryon, an attorney for the firm recently said.

Chongryon has appealed to the Tokyo High Court to block the deal. If the high court rejects the appeal, the permission granted by the district court will become final.

Payment is expected to be made within a month and ownership will be transferred to Marunaka Holdings if it makes the deadline.

Procedures for forcing the property into auction were triggered by a petition drafted by the government-backed Resolution and Collection Corp., which has ¥62.7 billion in claims against Chongryon.

In March last year, a religious group from Kagoshima made a successful bid of ¥4.519 billion the property but was unable to make the due date.

The second auction in October that year saw a Mongolian company win with a ¥5.01 billion bid only to be blocked by the court due to problems with documents submitted by the firm.

Marunaka was the only other bidder in the second round.