See Attached List of Plaintiffs (Attorney Jeon Soo-soo, Counsel for the plaintiff-appellant)

The head of Gangdong-gu Seoul Metropolitan Government (Law Firm Il, Attorney Lee Ba-soo, Counsel for defendant-appellant)

Goduk five Housing Reconstruction and Improvement Project Association (Law Firm Kangsan, Attorneys Park Jong-si et al., Counsel for the plaintiff-appellant)

September 3, 2010

1. The Defendant’s revocation of the authorization for the establishment of the Koduk Housing Reconstruction Project Association on April 30, 2010.

2. The costs of the lawsuit are assessed against the defendant.

The same shall apply to the order.

1. Details of the disposition;

A. The Gangdong-gu Seoul Metropolitan Government Promotion Committee for the Establishment of the Housing Reconstruction Association (hereinafter “instant Promotion Committee”) filed an application with the Defendant for approval for establishment of the association with the business area of 131 square meters and 83,387 square meters (hereinafter “instant business area”), and obtained the approval for establishment from the Defendant on October 27, 2007.

B. The instant promotion committee filed an application with the Defendant for authorization for the establishment of the housing reconstruction project partnership with the written consent (total consent rate of 84.87%, and the consent rate of 72.72%) of 808 owners of the entire land, etc. (48 of 66 owners of the commercial building) within the instant project zone (hereinafter “instant disposition”). On April 30, 2010, the Defendant approved the establishment of the Defendant’s auxiliary participant (hereinafter “participating”).

C. The Plaintiffs are the owners of commercial buildings and their appurtenant land located within the instant business zone, and are the Intervenor’s members.

[Ground of recognition] Evidence No. 1, Evidence Nos. 6 and 9, and the purport of the whole pleadings

2. The assertion and judgment

A. The plaintiffs' assertion

In Articles 16(2) and 17(1) of the Act on the Maintenance and Improvement of Urban Areas and Dwelling Conditions for Residents, and Article 26(1) and (2) of the Enforcement Decree of the same Act, to establish an association, the committee for promotion of the association must obtain consent from the members of the association, including the articles of association. The committee for promotion of this case confirmed the draft articles of association different from those of the owners of the land in the project area in the articles of association at the time of demanding consent of the association establishment from the owners of the land in the project area in question as the articles of association, and applied for approval for establishment of association to the defendant with the draft articles of association attached to the draft of the proposed articles of association after the amendment. The amendment did not obtain the consent of 3/4 of all the owners of the land, etc. in Article 16(2) of the same Act or 2/3 or more of the owners of the commercial building after the amendment. Accordingly, the instant

(b) Related statutes;

Maintenance and Improvement of Urban Areas

Article 16 (Authorization, etc. to Establish Cooperatives)

(2) When the promotion committee of housing reconstruction projects intends to establish a cooperative, it shall obtain authorization from the head of a Si/Gun, along with the consent of not less than 2/3 of sectional owners by Dong (in cases of welfare facilities, the whole welfare facilities within the housing complex shall be deemed one Dong) of collective housing in the housing complex, and of not less than 1/2 of land size (excluding cases where the sectional owners of collective housing by Dong are not more than five), at least 3/4 of all sectional owners in the housing complex, and at least 3/4 of land size of the whole housing complex, and documents determined by Ordinance of the Ministry of Land, Transport and Maritime Affairs, notwithstanding the provisions of Article 47 (1) and (2) of the Act on the Ownership and Management of Aggregate Buildings: Provided, That the same shall apply where it intends to modify minor matters pursuant to the proviso to paragraph (1), it may report thereon to

(5) Matters necessary for objects and procedures for consent to owners of land, etc. under paragraphs (1) through (3), application for establishment of an association, procedures for authorization, etc. shall be prescribed by Presidential Decree.

Article 17 (Method of Consent by Owners of Land, etc.)

(1) Consent (including withdrawal of consent or expression of opposite opinion under Articles 8 (4) 7, 13 (3) and 26 (3)) under Articles 7 (1), 8 (1) through (4), 13 (2), 14 (4), 16 (1) through (3), 26 (3), 28 (7), and 33 (2) shall be made by means of written consent using a seal imprint, and a certificate of personal seal impression shall be attached thereto. In such cases, where a previous certificate of personal seal impression is submitted, it may not be attached, but this shall not apply where attachment of a certificate of personal seal impression is deemed necessary due to changes, etc. in the seal imprint.

Article 18 (Legal Personality, etc. of Partnership)

(1) A cooperative shall be a corporation.

(2) A cooperative shall be established by making a registration of matters prescribed by Presidential Decree at the seat of its principal office within 30 days from the date of authorization for its establishment.

Enforcement Decree of the Act on the Maintenance and Improvement of Urban Areas and Dwelling Conditions for Residents (Amended by Presidential Decree No. 22151, May 4, 2010)

Article 26 (Methods, etc. of Applying for Authorization to Establish Cooperatives)

(1) Consent of the owners of a plot of land, etc. under Article 16 (1) through (3) of the Act shall be obtained by obtaining consent from the Minister of Land, Transport and Maritime Affairs.

(2) A written consent under paragraph (1) shall include the following matters:

1. Outline of the design of the building to be built;

2. Rough amount of expenses required for the removal and new construction of the building; and

3. Criteria for sharing expenses under subparagraph 2;

4. Matters concerning the reversion of ownership after completion of the project;

5. Articles of association.

Enforcement Regulations of the Act on the Maintenance and Improvement of Urban Areas and Dwelling Conditions for Residents (amended by Ordinance of the Ministry of Land, Transport and Maritime Affairs No. 265 on July 16

Article 7 (Application, etc. for Authorization to Establish Cooperatives)

(1) If the promotion committee of a rearrangement project intends to obtain authorization to establish an association under Article 16 (1) through (3) of the Act, it shall submit (including submission in electronic form) an application for authorization to establish a housing redevelopment project or an urban environment rearrangement project association in attached Form 3 or an application for authorization to establish a housing reconstruction and improvement project association in attached Form 4, along with the following documents:

1. Articles of association;

2. A list of union members (a document evidencing qualifications for union members);

3. A written consent to establish an association and documents verifying consent;

4. Minutes of the inaugural general meeting (including the list of persons attending the general meeting):

(c) Fact of recognition;

(1) From January 201, 2010, the instant promotion committee issued the owners of lands, etc. in the instant project zone with the following [mark] attached to the owners of lands, etc. in the instant project zone, and notified them of the consent to the establishment of the association in the articles of association recorded in the said guide book, while delivering the guide books for establishment of the association containing the same contents as indicated in the draft of the amended articles of association. From among the total owners of lands, etc., 808 (48 of the owners of lands, etc.) from among the 952 owners of lands, etc. (46 of the building owners) requested the association

본문내 포함된 표 조문 변경전 정관안 변경후 정관안 제18조 ⑤ 이사 또는 감사가 직무유기나 직무태만을 한 경우 또는 관계법령 및 이 정관에 위반하여 조합에 부당한 손해를 초래한 경우로 총회에서 해임의결이 있을 때까지 직무를 수행하는 것이 적합하지 않다고 인정될 때에는 대의원회의 의결(출석 대의원 3분의 2 이상의 찬성)에 따라 그 직무수행을 정지할 수 있다. ⑤ 이사 또는 감사가 직무유기나 직무태만을 한 경우 또는 관계법령 및 이 정관에 위반하여 조합에 부당한 손해를 초래한 경우로 총회에서 해임의결이 있을 때까지 직무를 수행하는 것이 적합하지 않다고 인정될 때에는 이사회 또는 대의원회의 의결에 따라 그 직무수행을 정지할 수 있다. 제19조 ③ 유급직원은 조합의 인사규정이 정하는 바에 따라 조합장이 임명한다. 이 경우 임명결과에 대하여 사후에 대의원회의 인준을 받아야 하며 인준을 받지 못하면 즉시 해임하여야 한다. ③ 유급직원은 조합의 인사규정이 정하는 바에 따라 조합장이 임명한다. 이 경우 임명결과에 대하여 사후에 이사회의 인준을 받아야 하며 인준을 받지 못하면 즉시 해임하여야 한다. 제22조 ① 총회는 법, 이 정관에서 특별히 정한 경우를 제외하고는 조합원 과반수 출석으로 개의하고, 출석조합원 과반수 찬성으로 의결한다. 다만 조합원의 100분의 10 이상이 직접 출석하여야 한다. ① 이전과 동일 ⑧ 없음 ⑧ 제21조 제6호의 시공자의 선정 및 변경의 의결방법은 제1항의 규정 및 「정비사업의 시공사 선정기준」 제14조를 원칙으로 하되, 과반수 이상으로 득표한 업체가 없는 경우에는 재투표를 실시하여 다득표 업체를 시공자로 선정 및 변경할 수 있다. 제24조 ④ 대의원의 선출 또는 궐위된 대의원의 보궐선임은 다음 각 호의 어느 하나에 해당하는 조합원 중에서 선임한다(이하 생략) ④ 대의원의 선출 또는 궐위된 대의원의 보궐선임은 다음 각 호의 어느 하나에 해당하는 조합원 중에서 선임한다(이하 생략) 1. 피선출일 현재 사업시행구역 안에서 3년 이내 1년 이상 거주하고 있는 자(다만 거주의 목적이 아닌 상가 등의 건축물에서 영업 등을 하고 있는 경우 영업 등은 거주로 본다) 1. 삭제 2. 피선출일 현재 사업시행구역 안에서 5년 이상 토지 및 건축물을 소유한 자 1. 피선출일 현재 사업시행구역 안에서 3년 이상 토지 및 건축물을 소유한 자 제41조 ① 조합은 주택재건축사업을 시행함에 있어 법 제16조 제2항 및 제3항의 규정에 의한 조합설립의 동의를 하지 아니한 자(건축물 또는 토지만 소유한 자를 포함한다)와 제11조의 규정에 의하여 조합원의 자격을 상실한 자의 토지 및 건축물에 대하여는 집합건물의 소유 및 관리에 관한 법률 제48조의 규정을 준용하여 매도청구를 할 수 있다. ① 조합은 주택재건축사업을 시행함에 있어 법 제16조 제2항 및 제3항의 규정에 의한 조합설립의 동의를 하지 아니한 자(건축물 또는 토지만 소유한 자를 포함한다)와 제11조 제2항 내지 제4항의 규정에 의하여 조합원의 자격을 상실한 자의 토지 및 건축물에 대하여는 집합건물의 소유 및 관리에 관한 법률 제48조의 규정을 준용하여 매도청구를 할 수 있다. 제46조 조합원의 소유재산에 관한 관리처분계획은 분양신청 및 공사비가 확정된 후 건축물 철거 전에 수립하며 다음 각호의 기준에 따라 수립하여야 한다. 조합원의 소유재산에 관한 관리처분계획은 분양신청 및 공사비가 확정된 후 건축물 철거 전에 수립하며 다음 각호의 기준에 따라 수립하여야 한다. 9. 부대·복리시설(부속토지를 포함한다. 이하 이 호에서 같다)의 소유자에게는 부대·복리시설을 공급한다. 다만 다음 각목의 1에 해당하는 경우에는 부대·복리시설의 소유자에게 1주택을 공급할 수 있다. 9. 부대·복리시설(부속토지를 포함한다. 이하 이 호에서 같다)의 소유자에게는 부대·복리시설을 공급한다. 다만 다음 각목의 어느 하나에 해당하는 경우에는 부대·복리시설의 소유자에게 1주택을 공급할 수 있다. 가. 새로운 부대·복리시설을 공급받지 아니하는 경우로서 종전의 부대·복리시설의 가액이 분양주택의 최소분양단위규모 추산액에 총회에서 정하는 비율(정하지 아니하는 경우에는 1로 한다)을 곱한 가액 이상일 것 가. 새로운 부대·복리시설을 건설하지 아니하는 경우로서 기존 부대·복리시설의 가액이 분양주택 중 최소분양단위규모의 추산액에 정관등으로 정하는 비율(정관등으로 정하지 아니하는 경우에는 1로 한다. 이하 나목에서 같다)을 곱한 가액보다 클 것 나. 종전 부대·복리시설의 가액에서 새로이 공급받는 부대·복리시설의 추산액을 차감한 금액이 분양주택의 최소분양단위규모 추산액에 총회에서 정하는 비율을 곱한 가액 이상일 것 나. 기존 부대·복리시설의 가액에서 새로이 공급받는 부대·복리시설의 추산액을 뺀 금액이 분양주택 중 최소분양단위규모의 추산액에 정관등으로 정하는 비율을 곱한 가액보다 클 것 다. 새로이 공급받는 부대·복리시설의 추산액이 분양주택의 최소분양단위규모 추산액 이상일 것 다. 새로이 공급받는 부대·복리시설의 추산액이 분양주택 중 최소분양단위규모의 추산액보다 클 것 라. 조합원 전원이 동의한 경우 라. 조합원 전원이 동의한 경우

(2) On April 4, 2010, the instant promotion committee held an inaugural general meeting on the agenda item 1, and presented the “case of confirmation of the draft articles of association” with respect to the amended articles of association as stated in the column of the articles of association after amendment. The said agenda item was resolved with the consent of 660 the entire owners of land, etc. in the project area and 29 the owners of commercial buildings among them.

(3) The instant promotion committee applied for authorization to establish the association to the Defendant, along with the draft articles of association, which was adopted by the owners of land, etc. as referred to in the foregoing paragraph (1).

[Reasons for Recognition] Evidence Nos. 2, 3, 5, Eul No. 4, 10, 11

D. Determination

(1) According to Articles 16(1) and (5), 17(1), and 18 of the Act on the Maintenance and Improvement of Urban Areas and Dwelling Conditions for Residents (hereinafter “Urban Improvement Act”), and Article 26(1) of the Enforcement Decree of the said Act (amended by Presidential Decree No. 22151, May 4, 2010; hereinafter the same), a reconstruction maintenance and improvement project association shall obtain consent of establishment from the owners of land, etc. located in a rearrangement zone after filing an application for authorization of establishment of a reconstruction association with the competent administrative agency in accordance with the requirements and procedures prescribed by the relevant Acts and subordinate statutes. The consent of the owners of land, etc. shall be obtained by filing an application for authorization of establishment of a reconstruction association with the competent administrative agency. Since the reconstruction project association approved by an administrative agency becomes a member of the corporation, the owners of land, etc. shall be deemed to have agreed to the establishment of association in writing, including the association’s organization, function, operation method, qualifications and status of association members, and shall not be deemed to have agreed to the association’s consent.

(2) According to the above facts, the amendment of the articles of association requires the association to divide voting rights to suspend the performance of its duties with the board of directors (Article 18(5)), the ex post facto approval for the appointment of salaried employees of the head of the association (Article 19(3)), the qualifications to be elected as representatives are modified (Article 24(4)), and the quorum requirements for selection and change of constructors are mitigated at the association’s general meeting (Article 22(8)), and the association’s qualification becomes disqualified due to the transfer of ownership of the building or status of being selected as residents (Article 41(1)), and (4) In particular, the association’s consent to the amendment of the articles of association cannot be deemed to have been made only after the amendment of the articles of association regarding the establishment of the company after the amendment of the 6th general meeting of landowners, etc. (the consent to the amendment of the 6th general meeting of landowners, etc.).

3. Conclusion

Therefore, the plaintiffs' claim of this case seeking revocation on the grounds of illegality of the disposition of this case is accepted on the grounds of the reasons.

[Attachment]

Judges Kim Jong-chul (Presiding Judge)