1. The plaintiff's claim is dismissed.

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

1. Basic facts

A. The defendant and 63 others constituted an association establishment promotion committee for housing redevelopment project in the zone D (hereinafter referred to as the "promotion committee of this case") for the purpose of establishing an association to implement the housing redevelopment project in the Ulsan-gu Seoul-gu, Ulsan-gu with the defendant as the chairperson, and obtained approval from the head of the Gu among Ulsan Metropolitan City pursuant to Article 13 (2) of the Act on the Maintenance and Improvement of Urban Areas and Dwelling Conditions for Residents (hereinafter referred to as the "Urban Improvement Act").

B. On November 26, 2012, the Plaintiff paid KRW 50 million to the instant promotion committee as the design service bid deposit, and lent KRW 40 million on January 30, 2013.

C. Upon filing an application for dissolution by the instant promotion committee, the head of Ulsan Metropolitan City, on March 28, 2014, revoked the approval of the instant promotion committee pursuant to Article 16-2(1)1 of the Urban Improvement Act.

[Reasons for Recognition] Unsatisfy, Gap 1-12, Eul 1-3 (including virtual numbers), the purport of the whole pleadings

2. Determination

A. The Plaintiff’s assertion 1) The promotion committee of this case constitutes an association under the Civil Act, not a non-corporate association, as the approval was revoked. The promotion committee of this case is liable to the Plaintiff for KRW 95.4 million (the bid bond of KRW 50 million loan of KRW 45.4 million). This is the act of commercial activity for all members. Thus, members including the Defendant are jointly and severally liable (i.e., the principal owner) the Defendant received a bid bond on behalf of the promotion committee of this case without a representative authority and borrowed money.

The defendant is responsible for the unauthorized Agent pursuant to Article 135(1) of the Civil Act.

(B) In accordance with Article 13(2) of the Urban Improvement Act, the Defendant is obligated to pay the Plaintiff KRW 95.4 million and damages for delay. (b) Determination 1) The promotion committee organized by the head of the Si/Gun pursuant to Article 13(2) of the same Act is an organization consisting of the promotion committee members and a non-corporate association.

Supreme Court Decision 2011Du2248 Decided February 27, 2014