The appeal is dismissed.

The costs of appeal are assessed against the defendant.

The grounds of appeal are examined.

1. Article 21 (1) of the former Rental Housing Act (amended by Act No. 11021, Aug. 4, 201; hereinafter “former Rental Housing Act”) provides that “Where a rental business operator constructs a house constructed with a business plan approved pursuant to Article 16 of the Housing Act after the expiration of the mandatory rental period with a subsidy from the National Housing Fund pursuant to Article 60 of the Housing Act or sells it for sale in lots on a housing site developed by a public project, the rental business operator shall first make a conversion into lots for sale in lots to any of the following lessees, among the houses constructed by the rental business operator with a business plan approved pursuant to Article 16 of the Housing Act.”

Furthermore, Article 4(4) of the former Rental Housing Act provides that “The head of a Si/Gun/Gu shall grant approval within 30 days if he/she has received an application for approval for conversion for sale in lots, and the head of a Si/Gun/Gu shall grant approval for conversion for sale in lots prescribed by Presidential Decree pursuant to paragraph (10).” Meanwhile, Article 4(7) provides that “Where a lessee fails to comply with conversion for sale in lots for at least six months even after a rental business operator obtained approval for conversion for sale in lots under paragraph (4),

The purpose of the former Rental Housing Act is to ensure the tenant's priority right to preferential sale conversion so that the lessee can purchase the rental housing in a stable manner.

In light of the legislative intent of the former Rental Housing Act and the structure of Article 21 of the former Rental Housing Act, “if a lessee fails to comply with conversion for sale for at least six months after approval for conversion of ownership” under Article 21(7) of the former Rental Housing Act.