Law "Donation of Jamsil Station Plaza, Use Fee for Auxiliary Facilities Also Allowed"

On August 7, 2022, participants are heading to the starting point at the 2022 LOTTE Oe Race held at Seokchon Lake and Lotte World Tower in Songpa-gu, Seoul.

[Asia Economy Reporter Kim Daehyun] Lotte Corporation, which donated the underground plaza during the construction of Lotte World Tower in Jamsil, filed an administrative lawsuit on the grounds that "it is unfair to pay usage fees for auxiliary facilities necessary for the maintenance and management of the facility," and won the first trial.

According to the legal community on the 13th, the Seoul Administrative Court Administrative Division 2 (Presiding Judge Shin Myunghui) recently ruled in favor of the plaintiff in the first trial of the lawsuit filed by Lotte Corporation against the mayor of Songpa-gu, Seoul, seeking cancellation of the refusal to cancel the road occupancy permit, etc.

In 2014, Lotte Corporation donated the underground plaza connecting Lotte World Tower and Jamsil Station on Subway Line 2 to Seoul City on the condition that no road occupancy fees or usage fees would be paid until February 2020. After the free usage period ended, Lotte Corporation was permitted to use the road occupancy and public property of the underground plaza for a fee.

In June 2020, Lotte Corporation requested Songpa-gu Office to cancel the permit for the auxiliary facilities, arguing that "it is unfair to pay usage fees for auxiliary facilities that are equipment necessary for the maintenance and management of the underground plaza and are only entrusted by Seoul City for maintenance and management." Songpa-gu Office did not accept this, and Lotte Corporation filed a lawsuit.

The auxiliary facilities on the 2nd and 3rd floors of the underground plaza cover an area of 4,229㎡, of which 2,957㎡ are used for septic tanks, air conditioning rooms, electrical rooms, etc. Some parts are used as vehicle passageways (underground roads).

The first trial ruled in favor of Lotte Corporation, judging that Songpa-gu Office did not have the authority to reject Lotte Corporation's request.

The court explained, "Those who have obtained road occupancy permits and public property usage permits can withdraw their permit applications by filing a cancellation request," and "the competent administrative agency must cancel it unless there are special circumstances such as a significant public interest."

The court pointed out, "If the usage permit is not canceled, the plaintiff will suffer the disadvantage of having to pay road occupancy fees even for the auxiliary facilities," and "the defendant claims that the rejection is a discretionary act but has not disclosed any public interest reason for the rejection."

Furthermore, the court added, "The plaintiff intends to give up exclusive rights to use and profit from the auxiliary facilities, not to refuse to fulfill the maintenance and management obligations under the agreement."

Songpa-gu Office appealed against the first trial ruling.