Plaintiff 1 and two others (Law Firm Kang, Attorneys Jin-young et al., Counsel for the plaintiff-appellant)

The head of Mapo-gu

District Housing Redevelopment and Improvement Project Association (Law Firm Jung-gu, Attorneys Lee Sung-hwan et al., Counsel for the plaintiff-appellant)

November 5, 2010

1. As to the Defendant’s Intervenor’s Intervenor on May 11, 2010, the part that approved the alteration of “a rough amount of expenses incurred in the removal and new construction of structures” was revoked.

2. The plaintiffs' remaining claims are dismissed.

3. Of the litigation costs, 30% is borne by the Plaintiffs, and 70% is borne by the Defendant, respectively.

On May 11, 2010, the establishment authorization granted by the Defendant to the Intervenor assisting the Defendant shall be revoked.

1. Details of the disposition;

A. On June 25, 2004, the Mayor of Mapo-gu Seoul Metropolitan Government publicly announced the Yongsan-gu Seoul Metropolitan Government Handong as a planned housing redevelopment project rearrangement zone, and on March 25, 2005, the Promotion Committee for the Establishment of Yongsan-gu Housing Redevelopment Project Cooperatives (hereinafter “instant Promotion Committee”) obtained the approval of the establishment from the defendant on March 25, 2005 with the consent of a majority of the owners of lands, etc. within the above planned rearrangement zone.

B. On June 26, 2008, the Mayor of Mapo-gu Seoul Metropolitan Government (hereinafter “instant improvement zone”) designated and publicly announced as a district redevelopment zone for three houses redevelopment and rearrangement zones, based on the maintenance master plan formulated as above by the Seoul Metropolitan Government Notice No. 2008-216 on June 26, 2008.

C. After holding an inaugural general meeting of the association on August 19, 2008, the instant promotion committee applied for authorization to establish an association with 336 written consent of 429 owners of the land, etc. in the instant improvement zone (78.3% of the consent rate), and the Defendant approved the establishment of the Intervenor joining the Defendant (hereinafter “ Intervenor”) on September 29, 2008 (hereinafter “instant authorization to establish the association”).

D. The Intervenor filed a written consent for the establishment of an association with 319 owners of land, etc. (75.6% of the consent rate) from 30,711.40 square meters among 422 owners of land, etc. within 30,711.40 square meters in the instant rearrangement zone after the authorization for establishment of the instant association was granted, and filed an application for the authorization for the establishment of an association with the Defendant on May 11, 201 (hereinafter “instant authorization for the establishment of an association”).

[Ground of recognition] Facts without dispute, Gap evidence Nos. 1, 2, 4, and 5, the purport of the whole pleadings

2. The assertion and judgment

A. The plaintiffs' assertion

The modification of this case should be cancelled inasmuch as the association establishment authorization of this case, which serves as the basis for the following reasons, is invalid or contains an error in the modification itself.

(1) For the establishment of a housing redevelopment and rearrangement project association, the consent of at least 3/4 of the owners of a plot of land, etc. located in a rearrangement zone shall be obtained based on a written agreement in which the estimated amount of expenses required for the removal and construction of a building under Article 26(2) of the Enforcement Decree of the Act on the Maintenance and Improvement of Urban Areas and Dwelling Conditions for Residents and Dwelling Conditions for Residents and the matters concerning the burden of expenses are stated

(A) The instant promotion committee drafted a written consent to establish an intervenor association (hereinafter “instant written consent”) with the content of “a summary of the design of the building” and “a rough estimate of the cost of removing and constructing the building” from the owners of the land, etc. in the instant improvement zone, and voluntarily supplement the public letter of the instant written consent without being separately delegated with the authority to supplement the written consent from the proposal of the consent.

(B) The instant promotion committee’s written consent, which was drafted prior to the designation and public announcement of the rearrangement zone, was formulated in a state where the subject of consent was not determined, such as the redevelopment project zone and its size, the scope of land owners in the zone, and the floor area ratio of new buildings

(C) Under the instant written consent, the size of the newly constructed building was indicated as “the second basement, the 19th floor above ground, and auxiliary facilities” in the “design outline of the newly constructed building” column, and the said description alone does not reveal the size and outline of the building for commercial use to be newly constructed due to the instant redevelopment project.

(D) The instant written consent did not necessarily require the association’s articles of incorporation to be attached, and a part of the written consent omitted.

(2) To obtain authorization for the change of the establishment of an association, it shall meet the requirements and procedures stipulated in Articles 16 and 24 of the Act on the Maintenance and Improvement of Urban Areas and Dwelling Conditions for Residents. The instant authorization for the change was unlawful on the following grounds.

(A) In order to obtain the instant authorization for modification, the Intervenor re-written consent from the owners of land, etc., to obtain new consent from the owners of land, etc. for the purpose of obtaining the instant authorization for modification by stating that the estimated amount of expenses incurred in removal of new buildings and new construction was the purpose to prepare for a lawsuit seeking invalidation against the instant authorization for the establishment of a new association (hereinafter “new re-written consent”), and did not notify the owners of land, etc. of the matters and purpose to obtain consent by falsely notifying the purpose of the instant re-written consent, and the purpose of the re-written consent was not to notify the method of withdrawing the consent. The owners of land, etc. did not know that the instant re-written consent would be used in the instant application for the authorization for modification. Therefore, the re-written consent

(B) Even if the re-written consent of this case is not invalid, 38 persons among the owners of the land, etc. who submitted the re-written consent of this case submitted a written withdrawal of consent prior to the application for modification. Thus, the Intervenor did not obtain at least 3/4 consent of the owners of the land, etc. for modification of establishment.

(C) In order to change the estimated amount of expenses incurred in the design outline of the building to be constructed by the Intervenor, and the removal of the building and new construction, it must undergo a resolution at the general meeting of the Union members. Although the estimated amount of the design outline, the removal of the building and the new construction costs has been greatly changed by the instant modified authorization, it did not undergo

(b) Related statutes;

It is as shown in the attached Form.

(c) Fact of recognition;

(1) After receiving the approval for establishment, the instant promotion committee requested the instant written consent from the owners of land, etc. in the relevant improvement zone in accordance with the form of written consent for establishment set forth in the Operational Rules of the Promotion Committee publicly notified by the Ministry of Construction and Transportation, and the instant written consent was stated as follows, and the items of “the outline of the design of the building” and “the estimated amount of the cost of removal of the building or new construction

5. Consent to approve the articles of association;

Consenting to the articles of association of a partnership and the establishment of a partnership under Article 16 of the Act shall comply with the articles of association in accordance with the principles of trust and good faith, and shall comply with the modification of the articles of association of a partnership as prescribed by the articles of association.

* The inter-associations of the Association agree to replace with the seals of officers and auditors.

7. Details of consent;

As above, I agree to the establishment of an association pursuant to Article 16 (2) and (3) of the Act on the Maintenance and Improvement of Urban Areas and Dwelling Conditions for Residents as owners of land, etc. who are located within a district subject to compulsory implementation three zones of housing redevelopment/urban environment rearrangement project, after being aware of and consenting to the matters referred to in subparagraphs 3 through 6, and agree to establish an association pursuant to Article 16 (2) and (3) of the Act on the Maintenance and Improvement of Urban Areas and Dwelling Conditions for Residents. In addition, "agreement on the establishment and improvement of an association" referred to in subparagraph 3 may be changed according to the contents of

(2) The instant promotion committee submitted the instant written consent from 336 of the owners of the land, etc. in the instant rearrangement zone, and notified the association members of the holding of the inaugural general meeting before applying for authorization to establish the association, and distributed meeting data containing the same contents as the above [main agenda] before the general meeting, and held the inaugural general meeting on August 19, 2008. The agenda item No. 6 was resolved upon as follows: 263, 2, 8, 45, 45, and 1, 72.1%) from among the 427 members at the time, among the 427 members at the time, among the written resolution.

본문내 포함된 표 제2호 안건 : 조합정관(안), 운영규정(안) 심의 의결의 건 제6호 안건 : 사업시행계획 결의의 건 2. 제안근거 1) 도시 및 주거환경정비법 제28조(사업시행인가) 3. 제안내용 1) 사업시행자는 정비사업을 시행하고자 하는 경우에는 정관 등과 건설교통부령이 정하는 서류를 첨부하여 시장·군수에게 제출하고 사업시행인가를 받아야한다. 2) 조합설립 동의서에 정비사업 내용을 작성하여 인가권자인 마포구청에 조합설립 서류를 제출하여야 한다. 4. 의결내용 ◎ 첨부된 사업시행계획에 대하여 결의하여 주시기 바랍니다. ※ 별첨 - 용강제3구역 주택재개발 정비사업시행 계획(안) - 마포용강 제3구역 주택재개발 정비사업 - ■ 설계개요 구 분 내 용 대지면적 공부상면적 : 약 30,946.70㎡ (9,361.38평) 공제면적[종교시설:1,335.04㎡,공공시설: 5798.34㎡(공원, 도로, 공공건물)] 사용 면적 : 약 22,968.12㎡ (6,947.86평) 규 모 지하 2층, 지상 10~19층 연 면 적 지상층 49,540.37㎡ (14,985.96평) 근린생활 : 750㎡ + 경비실 : 25.92㎡포함) 지하층 26,652.83㎡ (8,062.48평) 계 76,193.20㎡ (23,048.44평) (근린생활시설면적포함) 건축면적 4,166.62㎡ 건 폐 율 18.14% 용 적 률 215.69% (개발기능용적률 : 216.16%) 조경면적 4,134.26㎡ (대지면적의 15%) 용적면적 49,540.37㎡ ■ 부대 복리시설 설계개요 구 분 법 정 계 획 비 고 근린생활시설 세대수×6㎡(500㎡ 미만인 경우 500㎡ 가능)이하 2,964.00㎡ 2,179.79㎡ 지상 779㎡ 주택재개발정비사업조합설립동의서 3. 조합설립 및 정비사업 내용 동의 가. 신축건축물의 설계개요 대지면적(공부상면적) 건축연면적 규모 기타 30,946.70㎡ 76,193.20㎡ 아파트 지하2층, 지상 10~19층 9개동 및 부대시설 나. 건축물 철거 및 신축비용 개산액 (단위 : 백만원) 철 거 비 신 축 비 그 밖의 사업비용 합 계 984 75,760 7,674 84,418 ※ 사업계획 인가 및 관리처분 시 변경될 수 있음을 동의함

(3) According to the resolution of the above inaugural general meeting, the promotion committee of this case supplemented the items of “the outline of the design of the building” and “the estimated amount of expenses for removal and construction of the building,” as stated below in Chapter 336 of the present consent, and obtained the authorization to establish the association of this case by submitting an application to the Defendant for authorization to establish the association. Of the entire consent of this case submitted at the time of the above application, Chapter 9 was prepared prior to the designation and public announcement of the rearrangement zone, and Chapter 103 was not written by the date of preparation, but attached certificate of seal

[Supplementary Contents]

3. Consent to establish an association and improvement projects;

(a) Outline of the design of the new building;

The building site area (public injury area), total floor area, and other 30,946.70㎡ 76,193.20 square meters underground floor, 2 stories underground, 19 stories above ground and appurtenant facilities included in the main sentence.

(b) Estimated amount of the expenses for removal and new construction of the structures;

75,760 7,674 84,418 in total of the expenses for new construction of the tickets included in the main sentence

(4) After receiving the application for parcelling-out from the members of the association, the intervenor established a management and disposal plan as set forth below with regard to the estimated amount of expenses for demolition of the building and construction of new structures, and held the general assembly on November 24, 2009. The above general assembly proposed a "case of resolution on the management and disposal plan (draft)" as an agenda item 3, and approved the agreement of 217 written resolution from among the members of the association and 244 direct participants (56.8% of the consent rate).

92,403,139,500 won 53,440,792,860 won 148,619,932,360 won in total of the expenses for new construction of the tickets and other business expenses included in the main sentence.

(5) The amendment of the articles of incorporation and the resolution of the general meeting of the intervenor association are as follows:

Article 8 (Amendment to Articles of Incorporation)

(2) Amendments to the articles of incorporation shall be subject to the approval of the head of a Si/Gun with the consent of the majority of partners (referring to not less than 2/3 in cases falling under Article 20 (1) 2 through 4, 8, 12 or 15 of the Act): Provided, That any amendments to insignificant matters prescribed by the Enforcement Decree of the Act on the Maintenance and Improvement of Urban Areas and Dwelling Conditions for Residents (hereinafter referred to as the "Decree") shall be subject to the attendance of the majority of partners and the approval

Article 20 (Matters to be Resolved by General Meeting)

1. Amendment of the articles of association;

3. The amount and collection method of the dues under Article 61 of the Act;

4. Draft budget, such as a plan to use rearrangement project costs;

9. Details of allocation for each member of the rearrangement project;

10. Formulation and alteration of management and disposal plans under Article 48 of the Act (excluding the alteration of minor matters under the proviso of Article 48 (1) of the same Act);

Article 21 (Resolution Method of General Meeting)

(1) A general meeting shall be held with the attendance of a majority of members, and pass resolutions with the consent of a majority of members present, except as otherwise provided in the Act

(2) Notwithstanding the provisions of paragraph (1), the following matters shall be resolved with the attendance of a majority of the members and with the concurrent vote of at least two thirds of the members present:

4. Bearing expenses of the association and accounting of the association;

5. Time and procedures for bearing the costs incurred in a rearrangement project, including construction costs;

(6) If the result of convening a general meeting falls short of the quorum, it shall be re-called, and even in cases of re-calls, if it falls short of the quorum, the board of representatives may substitute for the general meeting (shortness omitted).

(6) At the time between September 2009 and April 2010, the Intervenor received a written consent from 319 members of the 422 association from 319 members of the 422 association and filed an application for the authorization to change the establishment of the association with the Defendant upon receiving the written consent from the Defendant, stating the “design Outline of the building” and the “estimated amount of expenses for demolition of the building and construction of the building,” etc. (On the other hand, 38 members of the re-written consent of the instant case prepared a written consent withdrawal, but the written consent withdrawal did not reach the Defendant or the Intervenor on the ground that

[Contents of Change]

3. Consent to establish an association and improvement projects;

(a) Outline of design of a new building (which may be changed later due to changes, etc. to an implementation authorization);

A building volume of 30,653.40 square meters in total floor area of a building site included in the main sentence, 75,371.95 square meters in size 5,059.46 square meters 213.07 square meters in size, 2 underground floors, 7 units (sale), 2 units (lease), and 2 units of commercial buildings on the ground level of 10-19 square meters in size;

(b) Estimated amount of expenses for removal or new construction of a building (which may be changed later due to an estimated amount, etc.*);

3,00,000,000 Won 91,199,640,000,000 in total of the expenses for new construction of the tickets and other business expenses included in the main sentence; and 142,20,635,00 won in total of the expenses for new construction of the tickets and other business expenses included in the main sentence.

[Ground of recognition] The aforementioned evidence, Gap evidence Nos. 3, 7, 8, 9, 12, 14, 15, and 16, and the purport of the whole pleadings

D. Determination

(1) Determination as to the plaintiffs' assertion in paragraph (1)

(A) The fact that some of the instant written consent was submitted in an official column

According to Article 16(1) and Article 26(1) of the Enforcement Decree of the Act on the Maintenance and Improvement of Urban Areas and Dwelling Conditions for Residents (amended by Act No. 9401, Jan. 30, 2009; hereinafter the same shall apply), when the committee for promotion of housing redevelopment projects intends to establish an association, it shall be decided by the method of obtaining consent from the owners of land, etc. on the written consent stating the outline of expenses for demolition and new construction of structures and the apportionment of expenses, etc. The written consent from the Seoul Special Metropolitan City Ordinance on the Maintenance and Improvement of Urban Areas and Dwelling Conditions for Residents (amended by Act No. 9401, Jul. 19, 2006; hereinafter the same shall apply) and Article 14(1)5 of the Enforcement Decree of the same Act (amended by Presidential Decree No. 21098, Oct. 29, 2008; hereinafter the same shall apply). The written consent of the owner of land, etc. on the establishment of an association cannot be obtained after the establishment consent form 20.

(B) A part of the instant written consent was requisitioned prior to the designation and public notice of a rearrangement zone

(1) Article 13 of the Urban Improvement Act provides that an association comprised of owners of a plot of land, etc. shall be established when a person, other than the head of a Si/Gun or the Corporation, intends to implement a rearrangement project (paragraph (1)); and that an association under paragraph (1) shall be established with five or more members, including the chairperson, including the chairperson, with the consent of a majority of the owners of a plot of land, etc. and shall obtain approval from the head of a Si/Gun in accordance with the method and procedure prescribed by the Ordinance of the Ministry of Construction and Transportation (paragraph (2)). There is no express provision regarding the establishment time of the promotion committee; the proviso to Article 8 of the Addenda of the Urban Improvement Act (amended by Act No. 9444, Feb. 6, 2009) stipulates that approval for the establishment of the promotion committee before the designation of the rearrangement zone is naturally planned; ② It is desirable that the promotion committee, which is the main body of a rearrangement zone, should be established and publicly announced, including the size of the new improvement zone and the building-to-land ratio of the project.

(C) that the outline of the design of the new building is not specific

① A housing redevelopment partnership may select a Si/Gun after obtaining authorization for the establishment of a partnership, and obtain authorization from the head of a Si/Gun with regard to the management and disposal plan formulated through a resolution of the general meeting of a partnership after the selection of a Si/Gun, and the management and disposal plan shall include estimated amounts of rearrangement project costs and the amount of and timing for sharing the burden on the association members following an appraisal of the previous land and buildings under the Public Notice of Values and Appraisal of Real Estate Act. Thus, prior to the establishment of a partnership, the contents of the management and disposal plan can be specified. As such, prior to the establishment of a partnership, the matters required under Article 26(1) of the Enforcement Decree of the Urban Improvement Act, such as a rough amount of expenses incurred in demolition and construction of a building, cannot be determined specifically and definitely. ② The consent of this case was filled and stated as a supplement and stated as the “second-story underground floor, 19th floor, and auxiliary facilities” after the outline of the design of a newly constructed building was filled in blank, and the consent of this case cannot be seen as being unlawful prior to the extent of the establishment of the association approval.

(D) The consent of the instant case was omitted from the partnership’s articles of incorporation or date of preparation

① Article 26(1)5 of the Enforcement Decree of the Act on the Maintenance and Improvement of Urban Areas and Dwelling Conditions (hereinafter “Act”) provides that a written consent shall state the matters concerning the articles of association in the written consent, and does not stipulate that the association shall be attached to the written consent, but the object of consent is not “establishment of the association” or “determination of the articles of association,” and (2) members shall take effect in the written consent by adopting the draft articles of association prepared by the committee at the general meeting. Since it is impossible to attach a written consent proposed before the establishment of the association, it is sufficient to mention the draft articles of association, and (3) it seems sufficient to include the matters concerning the articles of association in the written consent for the establishment of the association. The purport of the Act is to allow the owners of the land, etc. to receive information necessary for the decision on whether to participate in the redevelopment project, in particular, the written consent of the association. In light of the fact that the written consent of this case stated the “five. consent of the association’s articles of association,” and that the written consent was not prepared by the association members prior to the date of this case’s written consent.

(E) Ultimately, this part of the plaintiffs' assertion is without merit, since the above reasons alleged by the plaintiffs are not sufficient to deem the establishment authorization of this case to be null and void.

(2) Determination of the plaintiffs' assertion as to paragraph (1)(2)

(A) The invalidity or withdrawal of the re-written consent of the instant case was made

According to Articles 16(1) and 17 of the Urban Improvement Act (amended by Act No. 1031, May 31, 2010), and Article 27 subparag. 2-3 and 2-4 of the Enforcement Decree of the Urban Improvement Act (amended by Presidential Decree No. 22277, Jul. 15, 2010), in principle, in order to modify the matters for which authorization for establishment has been granted, the consent of at least 3/4 of the owners of a plot of land, etc. located in the rearrangement zone shall be obtained. However, if the intervenor intends to modify the outline of the design of the structure to be built or the estimated amount of expenses incurred in removing and constructing the structure to be built exceptionally, the intervenor’s association may report it to the head of the Si/Gun without the consent of the members of the plot of land, etc. to obtain the consent of at least 3/4 of the renewal zone as stated in the premise that the participant’s association is not required to obtain the consent of at least 3/4 of the above owners of land, etc.

(B) that the assembly did not go through a resolution

1) According to Articles 24(3)9-2, 12, and 24(5) of the amended Act, Article 34 subparag. 3, 4, Article 38 subparag. 1, 2, and 3 of the Enforcement Decree of the Act on the Improvement of Urban Areas and Dwelling Conditions, etc., where a housing redevelopment and improvement project association intends to amend a project implementation plan to “a summary of design of a building to be constructed” or “a outline of expenses incurred in demolition or new construction of a building” or “a outline of expenses incurred in the removal or new construction of a building,” it shall undergo a resolution at a general meeting. However, where it intends to revise a project implementation plan to alter minor matters, such as a change of the cost of a rearrangement project or site within 10% of the cost of a building, or expansion of the scale of installation of a unit or welfare facility, the association’s articles of association shall be determined without the resolution at a general meeting. Meanwhile, if it intends to revise a general meeting, it shall obtain consent from a majority of the association members when it intends to amend the articles of association.

2) Comprehensively taking account of the foregoing relevant provisions and the above-mentioned facts, the “a summary of the building to be constructed” among the contents of the instant modified authorization is nothing more than the “a summary of the building to be constructed” with the authorization granted for the establishment of the instant association, and the modification of minor matters, such as changing the site area within the scope of 10%, or expanding the scale of the building of appurtenant and welfare facilities rather than the building, and thus, such modification does not undergo a resolution

3) However, if the intervenor wants to change the total cost of removing and constructing the building from 84,418,00,00 to 142,220,635,000 won with the approval of the establishment of the instant association, it should undergo a resolution at the general meeting since the cost of the rearrangement project increases to 70%. ① The intervenor did not undergo a resolution at the general meeting to change the "total cost of removing and constructing the building" before the application for the approval of the modification of the above matters. ② The intervenor's resolution at the general meeting of the management and disposal plan (draft), which was presented to the 3 agenda at the general meeting of November 24, 2009 as the 3 agenda items, is deemed to have been an agenda for the modification of the above matters, since the intervenor's total cost of the project to be disbursed at the 84,418,000,000 to 148,619,362,636, etc. of the union members' share of the above price increase to 200%.

4) Therefore, the Intervenor did not undergo a general meeting resolution prior to the application for the modification of the instant case’s modification. Therefore, the modification of the instant case’s modification was unlawful in the part that approved the modification of the said matters. Therefore, this part of the Plaintiffs’ assertion is with merit within the scope of the above recognition.

3. Conclusion

Therefore, the plaintiffs' claim of this case seeking revocation on the ground that the authorization of this case was illegal is accepted in the part seeking revocation of the "a rough amount of expenses incurred in the removal and new construction of the building", and the remaining claims are dismissed as they are without merit.

[Attachment Form 5]

Judges Kim Jong-chul (Presiding Judge)