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Recent Works

Successful Damage Claim Against the State and Local Government for Soil Remediation Costs in a Redevelopment Area

Successful Damage Claim Against the State and Local Government for Soil Remediation Costs in a Redevelopment Area1. Fact Summary and Background• Client Situation: The client (AE District Housing Redevelopment Association) discovered severe soil contamination in land formerly owned by the State and Dongdaemun-gu while conducting apartment construction within the project area in Seoul. • Case Background: The Association had acquired the land through either paid purchase or gratuitous transfer from the State and Dongdaemun-gu. During construction, pollutants such as copper, lead, and zinc were found exceeding the threshold for soil contamination concerns, leading the Association to incur massive remediation expenses. • Key Review Matters: The core issues were whether the delivery of contaminated land by the sellers (State and local government) constituted a "default of obligation (incomplete performance)" and whether remediation liability could be sought for land that was transferred gratuitously. 2. Key Legal Issues• Liability for Damages Due to Incomplete Performance: Whether delivering land with buried pollutants without prior remediation constitutes a default under Article 390 of the Civil Act. • Standard for Calculating Remediation Costs: The process of objectively calculating the weight of pollutants and the resulting remediation costs specifically for the parcels sold by the defendants through expert appraisal. • Scope of Liability for Gratuitously Transferred Land: Legal interpretation on whether the State or local government can be held liable for warranty or damages regarding land transferred gratuitously (obsolete infrastructure) under the Urban Improvement Act. 3. Execution and Achievement• LKP’s Role and Arguments:o Assisted by a professional appraiser, LK Partners precisely analyzed the specific burial locations, volume, and weight of the contaminated soil to define the scope of the defendants' liability. o LKP pointed out that the defendants (Republic of Korea and Dongdaemun-gu) failed their remediation duties under the Soil Environment Conservation Act at the time of sale and logically proved that delivering the land in a contaminated state was a failure to fully perform contractual obligations. • Result for the Client: The court accepted LK Partners' arguments and rendered a partial victory for the plaintiff, ordering the Republic of Korea and Dongdaemun-gu to pay the Association for the remediation costs of the purchased land along with delayed interest. • Significance of the Case:o Established a practical legal precedent that redevelopment associations can be compensated for remediation costs based on "incomplete performance" when pollutants are found in land purchased from the State or local governments. o It is significant for reasonably distributing the economic burden of unexpected environmental cleanup costs—often incurred in large-scale projects—to the original parties responsible, such as the State. 

2026.02.12

Successful Defense for a Regional Housing Association: Nullification of Mutual Termination and Refund Agreements

Successful Defense for a Regional Housing Association: Nullification of Mutual Termination and Refund Agreements1. Fact Summary and Background• Inception of the Case: The Plaintiff (a member of the association) joined a regional housing association in Mapo-gu, Seoul, selecting a specific unit size (39㎡) and paying approximately KRW 139.4 million in contributions. • Change in Circumstances: Following a change in the project plan that eliminated the selected unit size, the Plaintiff and the Defendant (the Association) entered into an agreement to mutually terminate the contract and refund the full amount of paid contributions. • Litigation: When the refund was delayed, the Plaintiff filed a lawsuit against the Association seeking the return of the funds based on the refund agreement. 2. Key Legal Issues• Validity of Refund Agreements without General Meeting Resolutions: A central issue was whether the agreement remained valid despite the lack of a general meeting resolution. Since association contributions are considered "collective property" (total ownership by all members), any act to refund them must follow strict procedural protocols. • Determining "Impossibility of Performance": The court debated whether the inability to provide the originally selected unit size due to project plan changes constituted a legal "impossibility of performance" of the Association's contractual obligations. 3. Execution and Achievement• LKP’s Role and Arguments:o Representing the Defendant (the Regional Housing Association), LKP strongly argued that the refund agreement in question was an act of disposal that reduced the Association's assets and was a contract imposing a burden on members outside the established budget. Therefore, it was void without a formal resolution from the general meeting. o Furthermore, LKP defended against the "impossibility of performance" claim by demonstrating that changes in unit sizes are reasonably foreseeable during the permit process for regional housing projects. LKP noted that the contract explicitly stated unit sizes could increase or decrease, meaning the supply of a "specific unit size" was not the absolute objective of the contract. • Result for the Client: The court accepted all of LK Partners' arguments, dismissing the Plaintiff's claims in their entirety and ordering the Plaintiff to bear all litigation costs—a total victory for the Defendant Association. • Significance of the Case:o The judgment reaffirmed the established Supreme Court principle that "refund guarantees" or "mutual termination agreements" made individually with members are ineffective if they lack proper legal procedures (general meeting resolutions). o This case is significant for protecting the stability of the project by preventing the risk of depleting project funds through indiscriminate and non-procedural refund promises. 

2026.02.12

Recognition of Independent Distribution Rights for Owners of Houses Converted to Multi-Household Dwellings within New Town Districts

Recognition of Independent Distribution Rights for Owners of Houses Converted to Multi-Household Dwellings within New Town Districts1. Fact Summary and Background• Client Situation: The clients (Plaintiffs) are members of a redevelopment association in a Seoul New Town district who own individual units in buildings that were converted from multi-family (single owner) houses to multi-household (individual ownership) houses.• Case Background: The Association formulated a Management and Disposal Plan that granted only one distribution right (apartment voucher) to the entire group of clients, classifying the rest as subjects for cash compensation. The Association argued, based on Seoul Metropolitan Government ordinances, that the clients had not completed their partitioned registration (separate titles) by a specific deadline (end of 2003).• Key Review Matters: The core of the dispute was determining the "Base Date for Determining Rights" (cutoff date) for distribution rights in a New Town project and deciding whether statutory law or local ordinances should take precedence.2. Key Legal Issues• Legal Interpretation of the Base Date for Determining Rights: Unlike general redevelopment, New Town projects are governed by the "Special Act on the Promotion of Urban Refurbishment." LKP argued that the official designation date of the Promotion District (December 21, 2006) should serve as the base date for determining distribution rights.• Challenging the Illegality of Ordinance Application: LKP logically countered that the supplementary provisions of the Seoul Ordinance relied upon by the Association violated the legislative intent of the "Special Act on the Promotion of Urban Refurbishment" by retroactively depriving members of their legitimate distribution rights.• Meaning of "Conversion" in Building Ledgers: LKP emphasized that, legally, "conversion" should be judged based on the timing of the conversion in the building ledger, not the timing of partitioned registration.3. Execution and Achievement• LKP’s Role and Arguments:o Proven that the clients had completed the conversion to multi-household housing in 2002—well before the district designation—demonstrating that this was a legitimate exercise of rights rather than speculative "equity splitting."o Strongly argued that the resolution from a subsequent general meeting, held by the Association to cure procedural defects, was also void as it contained the same substantive defect (deprivation of distribution rights).• Result for the Client: The Seoul High Court accepted LK Partners' arguments, ruling that the portion of the Management and Disposal Plan that failed to recognize the clients' distribution rights was illegal. The court also confirmed that the general meeting resolution re-approving the plan was void.• Significance of the Case:o Successfully blocked an association from arbitrarily interpreting laws to infringe upon the property rights of minority members.o Provided a clear winning guideline for owners of converted multi-household houses within New Town projects, ensuring they do not unfairly lose their distribution rights due to complex and restrictive local ordinances.

2026.02.10

Resolving Large-Scale Construction Cost Disputes: A Victory in Additional Construction Costs and Inflation-Adjusted Claims

Resolving Large-Scale Construction Cost Disputes: A Victory in Additional Construction Costs and Inflation-Adjusted Claims1. Fact Summary and Background• Client Situation: The Plaintiff (Counter-defendant) in this case, Company P (hereinafter "the Contractor"), served as the contractor for a housing redevelopment project in the Uijeongbu area. Despite successfully completing the construction, the Contractor was unable to recover payments due to disagreements with the Association regarding construction cost increases and unpaid balances.• Case Background: The Defendant (Counter-plaintiff), the Jangam District 4 Housing Redevelopment Association (hereinafter "the Association"), contested the claims, arguing that the additional costs lacked contractual grounds or were excessive. Furthermore, the Association filed a counterclaim against the Contractor, citing reasons such as construction delays.• Key Review Matters: The primary points of contention included the appropriateness of cost adjustments based on price fluctuations (ESC), the recognition of additional costs resulting from design changes, and the finalization of unpaid amounts during the post-completion settlement process.2. Key Legal Issues• Interpretation of Price Adjustment Clauses: Legal interpretation of how the contractual provisions regarding price fluctuations should be applied to actual claims for construction cost increases.• Requirements for Recognizing Additional Costs: Establishing the existence of "actual input costs" and "implied agreement" to allow the Contractor to claim costs for additional work that may not have followed formal prior approval procedures by the Association.• Validity of Set-off and Liquidated Damages Claims: Assessing whether the Association’s claims of negligence against the Contractor (e.g., liquidated damages for delay) were specific and legally sound enough to be set off against the outstanding construction payments.3. Execution and Achievement• LKP’s Role and Arguments:o Conducted a precise analysis of the actual construction records and the evolution of design drawings to prove that the additional work was essential for the project's progress and that the Association was aware of these changes.o Demonstrated through expert appraisal and objective indicators that the cost increases due to price fluctuations were calculated legitimately in accordance with the contractual formulas.o Logically refuted the Association’s counterclaim regarding construction delays by highlighting force majeure factors and the procedural legitimacy of the timeline, thereby minimizing the Contractor's liability.• Result for the Client: The court accepted a significant portion of the Contractor's claims and ordered the Association to pay the unpaid construction costs along with delayed interest. (Plaintiff victory)• Significance of the Case:o This case is meaningful as it presented specific settlement standards that consider not only the literal interpretation of the contract but also the actual input process at the construction site—a common point of friction in large-scale redevelopment projects.o It secured the Contractor’s right to legitimate payment while providing a legal foundation for the Association to finalize the project by clarifying ambiguous debt relationships.

2026.02.10

Cancellation of Project Plan Due to Infringement of Environmental Rights and Abuse of Discretion Regarding a Retained Building

Cancellation of Project Plan Due to Infringement of Environmental Rights and Abuse of Discretion Regarding a Retained Building1. Fact Summary and Background• Client Situation: The client (Plaintiff) is the owner of "D" Cathedral, a religious facility located within the "B" Redevelopment District in Seoul, and is a member of the association.• Case Background: Initially, the cathedral was planned to be demolished and relocated. However, following the client's persistent requests, the redevelopment plan was changed to "retain" the cathedral at its current location.• Cause of Dispute: While the Defendant Association revised the project plan to keep the cathedral, they placed five apartment buildings (up to 19 stories high) in the immediate vicinity (approx. 10 meters away).• Major Damages: If executed, the cathedral would be completely surrounded by high-rise buildings, resulting in a near-total loss of sunlight (continuous sunlight duration reduced to 0 minutes) and severe privacy violations, with apartment windows overlooking the interior of the cathedral and the convent.2. Key Legal Issues• Abuse of Discretionary Power: Whether the Association, as an administrative body, properly weighed the public interest against the private interest (the client's environmental rights and freedom of religious activity) when establishing the plan.• Limits of Building Act Exceptions: Whether the "Special Construction Zone" designation, which waives certain sunlight height restrictions, can justify infringements that exceed the "socially acceptable limit" (limit of endurance).• Omission of Proportionality (Balancing of Interests): Whether the Association prioritized the convenience of other members while entirely neglecting the living interests and environmental rights of the cathedral's users.3. Execution and Achievement• LKP’s Role and Arguments:o Emphasized the cathedral's historical significance (established in 1957) and the stable environment enjoyed by resident priests, nuns, and approximately 3,700 parishioners.o Proved through expert appraisal that the sunlight infringement rate would reach 80–100% after the apartment construction, clearly exceeding the limit of endurance.o Pointed out procedural illegality, as the newly planned road would encroach upon essential cathedral facilities (mechanical rooms, emergency exit stairs) without prior consultation or consideration of alternatives.• Result for the Client: The Seoul High Court canceled the Defendant Association's Revised Project Plan.• Significance of the Case:o Clarified that for retained buildings in redevelopment zones, associations must go beyond a formal "retention" decision and ensure minimum environmental rights so the building can function for its original purpose.o Confirmed that individual environmental rights and living interests cannot be unconditionally sacrificed for vague reasons like "increased project costs" or "public interest of housing improvement"

2026.02.06

Court Recognizes Independent Member Status and Allotment Rights for Buyer Despite Seller's Temporary Multi-Property Ownership

Court Recognizes Independent Member Status and Allotment Rights for Buyer Despite Seller's Temporary Multi-Property Ownership1. Fact Summary and BackgroundThe clients (Plaintiffs) purchased real estate located within the "C" Urban Environment Maintenance Project District in Seoul and completed the registration of ownership transfer. However, a conflict arose because the seller (D) had purchased another property within the same district immediately after selling the first property to the clients.As a result, the seller (D) became a "multi-property owner" for a brief period of two days before the clients finalized their ownership registration. Based on the Act on the Improvement of Urban Areas and Residential Environments, the Defendant (the Reconstruction Association) applied the restriction that multiple owners shall be treated as a single member. Consequently, the Association established a Management Disposal Plan that granted only one joint allotment right to the clients and the seller collectively. The clients faced the risk of losing their individual right to an apartment unit due to circumstances beyond their control and sought legal assistance from LK Partners.2. Key Legal IssuesThe core issue of this case was the interpretation of Article 39, Paragraph 1, Item 3 of the Urban Improvement Act, which restricts membership status when multiple persons come to own properties previously owned by a single person after the authorization of the association's establishment.•The Association’s Argument: Following the literal text of the law, since the seller owned multiple properties after the association was established, the buyers must be treated as a single member together with the seller.•LK Partners’ Argument: The legislative intent of this provision is to prevent an artificial increase in the number of members that could undermine project feasibility. We argued that since the total number of eligible members had not increased compared to the time of the association’s establishment, it was unjust to infringe upon the clients' property rights based on the "accidental circumstance" of the seller's temporary additional purchase.3. Execution and AchievementThe court fully accepted LK Partners' legal reasoning and ruled in favor of the clients.•Court's Ruling: If the number of persons entitled to allotment has not changed from the time of the association’s establishment, the restriction on membership status under the Urban Improvement Act should not be applied.•Final Result: The court canceled the part of the Management Disposal Plan that designated the clients and the seller as joint beneficiaries for a single unit. This successfully restored the clients' status as sole beneficiaries entitled to independent allotment rights.•Significance of the Case: This case is a meaningful precedent that prevents bona fide buyers from being unfairly deprived of their rights through a rigid interpretation of membership restriction laws. It clarifies that the "number of members at the time of establishment" should be the substantial standard for determining allotment rights.

2026.02.06

LKP News

Jaehyun Nam Joins as Managing Partner

LK Partners LLC announces that Jaehyun Nam has joined the firm as Managing Partner. He brings extensive experience from the Prosecutors’ Office, Kim & Chang, and the Financial Supervisory Service of Korea.Managing Partner Nam is a multidisciplinary professional holding qualifications as an Attorney-at-Law, Certified Public Accountant, and Certified Tax Accountant. With a deep understanding of accounting and financial structures, he has built a practice that closely integrates capital markets regulation, corporate crime, and criminal investigation. He began his career at Samil PwC and the Financial Supervisory Service, where he handled statutory audits, accounting investigations, and holding company supervision, developing broad expertise in corporate finance and accounting irregularities. He later joined Kim & Chang, advising on capital markets and corporate matters including stock price manipulation, accounting-related cases, and mergers and acquisitions (M&A), and accumulated extensive civil and criminal litigation experience.After being appointed as a public prosecutor, Mr. Nam served at major prosecutors’ offices including the Seoul Central, Daejeon, Seoul Northern, and Uijeongbu District Prosecutors’ Offices. During this time, he personally led investigations into numerous significant cases involving financial crimes, distressed private equity funds, cryptocurrency and unlisted stock fraud, corruption in urban development projects, as well as sexual and other violent crimes.In particular, his experience as a prosecutor with the Special Investigation Headquarters for Emergency Martial Law cases, combined with his accounting and financial expertise, enabled him to handle complex economic crime investigations and trials. His work has been repeatedly recognized as exemplary by the Supreme Prosecutors’ Office, underscoring his strong practical capabilities.At LK Partners, Managing Partner Nam focuses on criminal, financial, and corporate matters, leading strategic, end-to-end case management—from early-stage investigation response and trial advocacy to corporate internal investigations and comprehensive risk management advisory services.

2026.01.09