Even if the state or local government is not the exercise of public authority, but is the subject of private economy in a net equal position, it is liable for damages under the Civil Act.

Even the State or local governments may not apply the provisions of this Act to cases where the State or local governments are engaged in private economic activities as the subject of private economy in a net equal status, not exercising public power.

Article 2 of the State Compensation Act

Supreme Court Decision 68Da2225 Decided April 22, 1969

Plaintiff 1 and three others

Korea

Seoul High Court Decision 69Na3300 decided May 20, 1970

The appeal is dismissed.

The costs of appeal shall be borne by the defendant.

The grounds of appeal by the defendant litigant are examined.

The State Compensation Act provides that the State Compensation Act applies to cases where a public official, in the exercise of public authority, causes damage to another person in violation of the Acts and subordinate statutes by intention or negligence and thereby causes damage to the State or local government, and where the State or local government uses it as the subject of private economy rather than the exercise of public authority even if it is the State or local government, if it uses it as the subject of private economy at a just equal position (Supreme Court Decision 68Da225 delivered on Apr. 22, 1969, Supreme Court Decision 68Da2225 delivered on Apr. 22, 196). Thus, there is no error of law that the

Therefore, the appeal is dismissed and the costs of the lawsuit are assessed against the losing party. It is so decided as per Disposition by the assent of all participating Justices.

Justices Yu Jae-gu (Presiding Justice) Doh-dong (Presiding Justice) and Doh-won Nabri-do