[Law Firm Now] Chungjeong "Leading Legal Advisor in Trust-Based Redevelopment Projects"

'Trust-Based Maintenance Project Team' within the Construction Real Estate Team
Providing Specialized Legal Services for Trust Companies
Consecutive Advisory Contracts with Leading Domestic Trust Companies

Private maintenance projects such as reconstruction and redevelopment are divided into the 'association method' and the 'trust method.' Unlike the association method, where an association composed of residents leads the project, the trust method involves a specialized trust company managing the project on behalf of the residents for a fee. Thanks to advantages such as reducing disputes within the association, project duration, and costs, the number of projects adopting the trust method has recently increased.

From the left, lawyers Jo Yong-gyeong, Jo Su-hyeon, Kim Ji-eun, Lee Sang-gyun, senior advisor Song Hyun-jin, and lawyer Choi Jun-yong
[Photo by Law Firm Chungjeong]

The 'Trust Company Maintenance Project Team,' a sub-team of the Construction and Real Estate Team at Law Firm Chungjeong, was established under the leadership of Partner Attorney Lee Sang-gyun (Judicial Research and Training Institute Class 25) to provide specialized legal services exclusively for trust companies after the amendment of the Urban and Residential Environment Maintenance Act in 2016 allowed trust method maintenance projects.

Attorney Lee built his expertise by representing domestic construction companies, including Daewoo Construction, in lawsuits related to pre-sale payments, bankrupt subcontractors, and reconstruction/redevelopment during the 1997 financial crisis. In 2004, he organized the Construction and Real Estate Team, the first specialized industrial team within Chungjeong.

The Trust Company Maintenance Project Team, newly established to provide differentiated services by field, is led by Attorney Lee as team leader, with Partner Attorney Choi Jun-yong (Class 36), Attorneys Jo Yong-gyeong (9th Bar Exam), Kim Ji-eun (10th), Jo Su-hyun (10th), and Specialist Song Hyun-jin. Specialist Song, a former senior researcher of Samsung C&T’s legal team, has authored over 20 books including 'Redevelopment and Reconstruction Theory and Practice,' and has served as an arbitrator at the Korean Commercial Arbitration Board and a civil mediator at the Seoul Central District Court.

The principle of the Trust Method Maintenance Project Team is to communicate frequently and promptly with clients. Upon receiving a request, they send a legal opinion within three days and dispatch 2 to 5 opinions weekly. In some cases, opinions are sent on the same day as the request.

Following this principle, they were able to sign a business agreement with Korea Trust, which led the reconstruction project of the Jinheung-Royal Apartment district in Bisan-dong, Dongan-gu, Anyang-si, Gyeonggi Province, as the 'first sole maintenance project implementer' among trust companies in 2016. Subsequently, advisory contracts were signed consecutively with Korea Land Trust, a leader in the trust industry in 2017, Mugunghwa Trust in 2019, and KB Real Estate Trust last May.

Representing trust companies, they have also accumulated various successful litigation cases. Recently, in a lawsuit filed by landowners against a trust company seeking cancellation of the designated developer appointment, the consent procedure for developer selection was the key issue. The Trust Company Maintenance Project Team emphasized that information such as estimated contribution amounts was provided to the owners and proved that there were no defects in the designation requirements, resulting in a favorable ruling.

The Construction and Real Estate Team, including the Trust Method Maintenance Project Team, maximizes synergy by collaborating with various specialized teams within Chungjeong such as the Finance Team, Criminal Team, and Fair Trade Team depending on the case. Additionally, another sub-team within the Construction and Real Estate Team, the 'General Construction and Real Estate Team,' provides comprehensive legal advice on various legal issues arising during construction processes such as construction payments, bidding, permits, sunlight rights, environmental pollution, defects, and sales contracts. The 'Redevelopment and Reconstruction Team' handles various consultations and litigation related to legal disputes arising during project implementation processes such as urban maintenance, urban development, and regional housing.

Attorney Lee stated, "We provide various legal services from the early stages of maintenance projects to liquidation," and added, "Based on long-standing experience and expertise, we pride ourselves on being a leading law firm in trust method maintenance projects."