Korea Land and Housing Corporation (Law Firm Shin & Yang, Attorney Song Jong-sung, Counsel for defendant-appellant)

Masung Market (Attorney Park Jong-soo, Counsel for the plaintiff-appellant)

June 10, 201

Suwon District Court Decision 2009Guhap12830 Decided September 9, 2010

1. The plaintiff's appeal is dismissed.

2. The costs of appeal shall be borne by the Plaintiff.

The judgment of the first instance shall be revoked. The disposition of imposition of development charges of KRW 1,410,330,610, imposed on the plaintiff on February 11, 2009 (the defendant appears to be a clerical error in the written complaint on February 12, 2009) shall be revoked.

1. Quotation of judgment of the first instance;

A. The reasoning for the statement concerning this case is as stated in the reasoning of the judgment of the first instance except for the part added in Section B below, and thus, this is cited in accordance with Article 8(2) of the Administrative Litigation Act and Article 420 of the Civil Procedure Act.

B. Additional parts

(1) The following shall be added to the right side of the 8th judgment of the first instance court.

[No evidence exists to deem that the amount exceeds the amount calculated under Article 11-2 (2) 3 of the Regulations on the Imposition and Collection of Development Charges if the administrative expenses paid by the plaintiff are calculated pursuant to Article 11-2 (1) of the Regulations on the Business of Imposition and Collection of Development Charges and Article 12 of the Standards for Budget Preparation (Rules on Accounting of the Ministry of Finance and Economy).]

(2) The following shall be added to the right side of the first page of the first instance judgment of the first instance.

"If the plaintiff recognizes development costs only divided in proportion to the ratio of the area of land subject to imposition of development charges on the whole area of the project district among the charges for building roads outside a district, the ratio recognized as development costs out of the charges for building roads outside a district is reduced as the area of land excluded from imposition, such as rental housing districts, is larger in the total project district, and the development charges that the project operator bears is increased. This assertion that the public interest of the relevant project (the reason for exemption from imposition of development charges on rental housing districts, etc. is considered in consideration of the public interest) increases, which results in contradictory results in the increase of the development charges that the project operator bears, but the development charges that the project operator should bear, as the area of land excluded from imposition, such as rental housing, has decreased in the larger area of land subject to imposition

(3) The following shall be added at least 11 of the 13th judgment of the first instance.

Article 8 (Rate of General Management Expenses and Profit Rate in Determination of Budget Price by Cost Accounting)

(1) In determining a budget price by cost accounting, the ratio of general management expenses shall not exceed the ratio falling under any of the following subparagraphs:

1. Construction works: 6/100;

2. Manufacture and purchase of foods and beverages: 14/100;

3. Manufacture and purchase of textile, clothing and leather products: 8/100;

4. Manufacture and purchase of trees and tree products: 9/100;

5. Manufacture and purchase of paper, paper products, and printed publications: 14/100;

6. Manufacture and purchase of chemicals, petroleum, coal, rubber, or plastic products: 8/100;

7. Manufacture and purchase of non-metallic mineral products: 12/100;

8. Manufacture and purchase of primary metal products: 6/100;

9. Manufacture and purchase of assembly metal products, machinery and equipment: 7/100;

10. Purchase of imported goods: 8/100;

11. The manufacture and purchase of other goods: 11/100.

12. Services: 5/100 “

(4) The following shall be added to the first instance judgment of the first instance.

Article 12 (Contents of General Management Expenses)

General management expenses shall mean the following expenses, excluding sales expenses, among all business expenses incurred in the management activities sector for the maintenance of enterprises, which do not belong to manufacturing costs, excluding sales expenses, etc., for executive salary, office staff's pay, allowances, allowances, retirement benefits, retirement allowances, welfare expenses, transportation and communications expenses, transportation and communications expenses, water supply and telecommunications expenses, taxes, rent, payment, depreciation expenses, transportation expenses, vehicle expenses, ordinary test and research expenses, insurance premium, etc., and shall be calculated based on corporate income statements.

2. Conclusion

Therefore, the judgment of the court of first instance is just, and the plaintiff's appeal is dismissed as it is without merit, and it is so decided as per Disposition.

Judges Kim Chang-chul (Presiding Justice)