20 Taiwanese investors in Cambodian real estate project yet to receive units

20 Taiwanese investors in Cambodian real estate project yet to receive units

2022-08-22

Reports of Taiwanese people falling for human trafficking scams in Cambodia have recently captured headlines in Taiwan. But that is not the only source of tensions between the two countries in recent days. Up to 20 Taiwanese buyers have been affected by a real estate investment dispute in the Southeast Asian country. The buyers had purchased 30 units at a luxury development in Cambodia’s capital, giving millions to the land developer. The building complex was scheduled to be finished in 2023, but as of August, the construction site remains empty.

Back in 2016, Cambodia’s Royal Group announced a landmark twin-building project in Phnom Penh, called “The Royal One.”

The project comprised two high-rises 62 floors tall, offering 533 units. It was set to be the tallest building in the capital, affording stunning views over the Mekong River. Many Taiwanese firms invested in the project, which ended up coming to nothing.

Taiwanese businessperson in Cambodia
Royal Group has been dubbed Cambodia’s richest conglomerate. But notoriety brings scrutiny. I think it was because of political reasons, but in late 2019, a raid was conducted at a nightclub related to the group. They found a huge amount of drugs. So the conglomerate was investigated, and more than 300 people were arrested. With the upper ranks all taken away, the group had its days counted.

A Taiwanese businessperson in Cambodia says Royal One fell from grace after it was exposed by the government. Back in 2016, the group’s vice chairman Kith Thieng had traveled to Taiwan to sign a sales contract with a local real estate agency. The project’s groundbreaking ceremony was held in 2019, with completion scheduled for 2023. But as of Aug. 18 this year, the construction site remains empty.

Reports say about 20 Taiwanese buyers have been affected. They had purchased a total of 30 units, to the tune of about NT$7.5 million per unit. They had paid down payments, contract fees and about 31% of the total cost of the units to the developer. But now that the project is delayed, the Cambodian developers and Taiwanese sales agents are engaging in a complicated transnational legal battle.

Huang Po-jung
Lawyer
If the Taiwan agent has already engaged in the deal and shared profits it could be considered an accomplice in the case and could have to bear criminal responsibility in accordance with the Banking Act of the Republic of China.

And property disputes are not the only source of tensions between Cambodia and Taiwan. According to Minister of the Interior Hsu Kuo-yung, about 370 Taiwanese are stuck in Cambodia after falling victim to human trafficking scams. Amid suggestions that Taiwan’s government should pay ransoms to rescue the victims, Hsu says that doing so would just be a temporary solution that wouldn’t actually solve the problem.

Hsu Kuo-yung
Minister of the interior
Our nation’s position and our government’s position on the matter is just like that of any other country in the world. We will not pay ransoms. We cannot negotiate with criminals like that. Otherwise, these kinds of cases will never stop arising.

The minister said Taiwan would not negotiate with criminals, saying that money would not solve the problem. He added that Taiwan would continue cooperating with other countries to find solutions. The real estate dispute is just another layer of complexity to an already complicated situation.