District, Shingil 11 District Redevelopment Promotion Zone Designation Related Repurchase Right Compensation Claim Victory, Protected 1.6 Billion Won in Taxes... Landowner Filed Lawsuit for Not Receiving Land Project Plan Change Notice... District Actively Responded Confirming Similar Supreme Court Precedent
[Asia Economy Reporter Jongil Park] Yeongdeungpo-gu (Mayor Chae Hyun-il) won a lawsuit claiming compensation for the right of repurchase related to the designation of the Shingil 11 District Redevelopment Promotion Zone, protecting 1.6 billion KRW of precious taxpayers' money.
The right of repurchase is a right that protects individual property rights from excessive acquisition in public projects, based on Article 91 of the Act on Acquisition and Compensation of Land for Public Projects.
If a project is abolished or changed within 10 years from the date of land acquisition, causing the loss of all (or part) of the land's function, the right of repurchase arises for the owner at the time of acquisition.
This lawsuit originated from the area of the road project land acquired through agreement as public land during the urban planning facility (road) project "Road Construction between Shingil-dong 331~329" promoted by the district from 2002 to 2003.
The site was designated as the Shingil 11 Redevelopment Promotion Zone in 2007, changing the existing urban planning facility (road) project. Accordingly, the district announced the approval of the Shingil 11 District Housing Redevelopment Project in 2009 and the approval of the management disposition in 2011. Construction started in 2013 and was completed in 2016.
During this process, the original landowners filed a lawsuit claiming compensation of about 1.6 billion KRW, arguing that the district did not notify them of the right of repurchase despite its occurrence due to the project changes.
The key issue in the right of repurchase lawsuit stemmed from the amendment of the Act on Acquisition and Compensation of Land for Public Projects between the announcement of the Shingil 11 District Redevelopment Promotion Zone housing redevelopment project approval (2009) and the management disposition approval (2011).
Whether the change in the urban planning facility (road) project plan is considered to have occurred in 2009 or 2011 affects whether it qualifies as a "conversion of a public project" and consequently whether the right of repurchase arises.
The original owners argued that the change should be based on the 2009 project approval announcement, while the district contended it should be interpreted based on the 2011 management disposition approval.
If the change is considered at the 2009 project approval announcement, the pre-amendment law applies, meaning it does not qualify as a conversion of a public project and the right of repurchase arises. Conversely, if the change is considered at the 2011 management disposition approval, the amended law applies, classifying it as a conversion of a public project and no right of repurchase arises.
The first trial ruled in favor of the original owners (plaintiffs). However, the district confirmed a precedent where a similar case was won at the Supreme Court, appealed based on this, and won the second trial.
Unlike the first trial, the second trial interpreted that even if the urban planning facility (road) change decision to abolish the road was included at the time of the Shingil 11 District project approval announcement (2009), it could not be seen that the necessity of the public project immediately disappeared.
Therefore, it was reasonably interpreted that the necessity of the public project disappeared after the management disposition announcement (2011), and the right of repurchase arose then.
The plaintiffs did not appeal the second trial ruling, concluding the right of repurchase compensation lawsuit with a final victory for Yeongdeungpo-gu, protecting 1.6 billion KRW of precious taxpayers' money.
Chae Hyun-il, Mayor of Yeongdeungpo-gu, stated, "Winning this right of repurchase compensation lawsuit has secured the legitimacy of the public project," and added, "We will realize a more open Yeongdeungpo through proactive administration for public interest."
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