The judgment below is reversed and the case is remanded to Seoul High Court.

The grounds of appeal are examined.

1. According to the National Land Planning and Utilization Act (hereinafter “National Land Planning Act”), permission for a land transaction contract shall be used for the permitted purpose for a period prescribed by the Presidential Decree not exceeding five years, except in cases where any ground prescribed by the Presidential Decree exists (Article 124(1)), and the head of a Si/Gun/Gu may order the non-performance of the duty to utilize the land under the above provision to perform the duty to utilize the land within a reasonable fixed period (Article 124-2(1)), and the head of a Si/Gun/Gu shall determine to impose a non-performance penalty of the amount prescribed by the Presidential Decree within the limit of 10/100 of the acquisition value of the land in cases where the performance is not performed within the fixed period of time

(Article 124-2(2). In addition, Article 124(1)7 of the National Land Planning and Utilization Act provides that “Where it is impossible to use it for the permitted purpose due to any cause not attributable to the permission for a land transaction contract, such as the implementation of public works, but for which it is impossible to use it for the permitted purpose” as one of the “reasons prescribed by the Presidential Decree” under Article 12

On the other hand, the National Land Planning and Utilization Act, separate from the land transaction contract permission system, provides that a person who intends to engage in development activities, such as construction of buildings and change of land

(Article 56(1) of the National Land Planning Act. In light of the contents and purport of the aforementioned relevant statutes, the land transaction contract permission system aims to prevent speculative transactions of land and speculative transactions in an area where speculative transactions of land are prevalent or land prices rapidly rise, and an area where such concerns exist, and the competent authority’s purpose of land use to enter into a land transaction contract meets the standards for permission under the National Land Planning Act, taking into account the aforementioned legislative intent.