Exclusive: KORAIL's LTE-R Construction Cost Dispute... Despite Partial Recognition by Mediation Committee, Litigation Proceeds

A dispute over construction costs for KORAIL's LTE-R integrated wireless network project has escalated to litigation. While the National Contract Dispute Mediation Committee recommended partial payment of costs, KORAIL rejected the proposal, insisting that the contractor should bear the expenses under the purchase-and-installation contract. Contractors, including Wireable, argue that design changes stemming from site conditions cannot be solely attributed to the contractor. The legal battle centers on whether design change costs should be the contractor's responsibility or a cost borne by the project sponsor. The conflict originated during detailed design phases of the Gyeongbu Line project, where Wireable, along with LG Uplus, Wingtech, and Dongbo InfoComm, faced discrepancies between initial designs and on-site conditions, necessitating design adjustments. KORAIL's refusal to acknowledge these changes led to the dispute, with Wireable citing ongoing negotiations and real-time reporting as justification for their stance.