[Law Firm Now] Jipyung Trust & Real Estate PF Dispute Team "Increased Real Estate Disputes Must Be Resolved with 'Trust Experts'"

Reorganization of the Real Estate PF Normalization Center Established in 2012 and Launch of a New Team
Emergence of Expertise in Real Estate PF Market Disputes and Trusts
Attorney Song Hansah Leading, Numerous Experts Active

Editor's NoteIn the series [Law Firms Now], we deliver various news such as domestic law firms' winning cases, recruitment of new members, launch of task forces, and establishment of centers.

The 'Trust and Real Estate PF Dispute Team' of Jipyung Law Firm. Attorneys Bohee Park, Hansa Song, Sanghoon Ahn, Ikbeom Kim (front row from left), Bonggyu Park, Hyewon Song, Minje Kang (back row from left) / Photo by Jipyung Law Firm

[Asia Economy Reporter Kim Hyung-min] Law firm Jipyung is standing out in the field of related disputes based on its expertise in trust law and many years of accumulated work experience in the real estate project financing (PF) sector. To respond to the recent crisis in the recovering real estate PF market, it has reorganized the Real Estate PF Normalization Center, which was launched in 2012, and officially launched the 'Trust and Real Estate PF Dispute Team,' drawing attention.

This team emerged as the likelihood of disputes related to real estate PF projects has recently increased. The sense of crisis within the real estate PF market is rising daily. Many real estate PF projects are facing difficulties such as rising interest rates and raw material prices, tightening real estate markets, and increasing unsold units. In such circumstances, disputes are inevitable in projects that ultimately fail to normalize.

To properly respond to disputes, expertise in trusts is essential above all. There are various types such as collateral trusts and managed land trusts, but most real estate PF projects are promoted through real estate trusts. Real estate trusts are a system where ownership of specific real estate is completely transferred to a trust company and managed or disposed of for a specific purpose, which conflicts with Korea's unique ownership system. Therefore, Korea has a separate Trust Act that permits trusts accordingly. Due to this uniqueness, understanding the inherent legal principles of trusts is important to properly analyze the rights related to real estate trusts. Hence, legal support from experts is urgently needed.

Attorney Song Han-sa (Judicial Research and Training Institute Class 33), who leads Jipyung's Trust and Real Estate PF Dispute Team, is an expert who has handled numerous PF and real estate trust disputes since the 2008 financial crisis as the deputy head of the Construction and Real Estate Group. Recently, he completed the Trust Law course at Seoul National University Financial Law Center and the professional doctorate program at Seoul National University Law School. Attorney Kim Ik-beom (Judicial Research and Training Institute Class 46), a former real estate dedicated trial researcher who joined Jipyung, is a skilled lawyer who represented a trust company and led a remand judgment in a case where the statute of limitations for collection claims was an issue.

Attorney Park Bong-gyu (Bar Exam Class 6) transformed from a financial advisor related to real estate PF to a litigation lawyer. He majored in trust law in the doctoral program at Sogang University Law School. Representing a trust company, he successfully obtained a favorable judgment regarding the scope of the fiduciary duty of trustees in borrower-type land trust projects. Subsequently, in a case where the interests of the senior beneficiary lenders and the construction company conflicted during the trust settlement phase, he secured a favorable ruling for the lenders through excellent advocacy on real estate PF and trust structures.

Attorney Kang Min-je (Bar Exam Class 4), who joined the team from the Construction and Real Estate Group, won a judgment by legally analyzing the relationship between sales contracts and trusts in disputes collectively arising between multiple buyers and trust companies in managed land trust projects. He also contributed to preventing disputes in advance through numerous legal consultations on trust property disposal procedures and analysis of rights relationships during the settlement phase. Additionally, skilled attorneys such as Park Bo-hee (Bar Exam Class 4), who handled conflicts of interest issues and lawsuits regarding trust fees reduction for trust companies operating multiple projects, and Song Hye-won (Bar Exam Class 8), who has successfully handled numerous disputes arising from compulsory execution of trust properties, are actively participating.

Key advisory members from various fields also participate, including Attorney Jung Won (Judicial Research and Training Institute Class 30), team leader of the Construction and Real Estate Group and an authority in urban renewal projects; Attorney Bae Ki-wan (Judicial Research and Training Institute Class 37), a financial product dispute expert from the Corporate Finance Litigation Team; and Attorney Ahn Sang-hoon (Judicial Research and Training Institute Class 33) from the Financial Advisory Group. They communicate with team members to update trends in the construction and finance industries related to trusts and help prepare proactive responses to the latest issues. Recently, they have been focusing on strengthening capabilities related to urban renewal projects where trust companies act as project operators or agents.