Land Sold Unaware It Was State-Owned... Court Orders 8.3 Billion Won Compensation to Original Owner

A court ruling has been made that if a landowner sells land to another party without knowing that the land has been incorporated into national land, compensation for losses due to the national land acquisition must be paid to the original owner.

Seoul Administrative Court.

According to the legal community on the 27th, the Seoul Administrative Court Division 1 (Presiding Judge Yang Sang-yoon) ruled in favor of Mr. A in a loss compensation claim lawsuit filed against the Seoul Metropolitan Government, ordering "Seoul City to pay Mr. A 8,347,680,000 KRW."

Mr. A purchased 1,250 pyeong and 103 pyeong of land (rice paddies) in Yeongdeungpo-gu, Seoul, in September 1964, and then sold this land to others in 1975 and 1983. Seoul City completed the ownership transfer registration for the land in February to March 1989. The lands underwent division, merger, and land category changes, eventually becoming part of Gangseo-gu, Seoul.

Mr. A claimed that the land, originally owned by him, became excluded from the Han River under the former River Act and thus belonged to the Republic of Korea, and that Seoul City has an obligation to pay compensation under the Special Measures Act on Compensation for River Incorporated Land. Seoul City countered, stating, "Since Mr. A sold the land, the object of the sale should be considered to include not only the land but also the right to claim compensation for losses."

The court ruled in favor of Mr. A.

However, the court stated, "Land incorporated into the river zone and becoming national property cannot be the object of transactions between private parties. Therefore, even if Mr. A sold the respective lands in this case, such sales are contracts with an object that is originally impossible to perform and are thus invalid."

It further concluded, "Compensation for losses due to river incorporation belongs to Mr. A, the lawful owner of each land at the time of incorporation. Unless there are special circumstances, Seoul City has an obligation to pay compensation to Mr. A under Article 2 of the Special Measures Act."