1. The appraisal of the value of State property for the calculation of indemnity imposed on unauthorized occupancy of State property and usage fees that serve as the basis thereof shall be based on the condition at the time of commencement of occupancy unless there exist any special circumstances, and even if the possessor after the commencement of occupancy changes the form and quality of state property for any purpose other than the original land use, it shall not be based on changed conditions;

2. Nevertheless, the court below duly confirmed the fact that the plaintiff, around 1985, changed the form and quality of 460 square meters among state forests ( Address 1 omitted), 554,396 square meters of state forests, from forest land to forest land, and occupied 457 square meters of forest land from forest land and warehouse without permission, and occupied 457 square meters of forest land as a garden by changing the form and quality of forest land around September 1989. In imposing indemnity on the plaintiff as of May 17, 1993, the court below determined that the amount of indemnity calculated by multiplying the actual state of unauthorized Occupancy in the above portion without permission by the rate of use in the property value assessed as a site. Accordingly, if the portion without permission has become a site from forest land by changing the form and quality of forest land, the defendant considered the current state of the land as the site and assessed the value of the property as the basis thereof, and thus, it erred in the misapprehension of legal principles on the assessment of the value of state property for calculating indemnity and usage fees.

3. Therefore, the lower judgment is reversed, and the case is remanded to the Seoul High Court. It is so decided as per Disposition by the assent of all participating Justices on the bench.

Justices Ahn Yong-sik (Presiding Justice)