Ulsan City Wins After 5-Year Battle Over Taehwagang Embankment Site

97% Victory in Land Occupation Appeal Filed by Nong-eochon Corporation
Recognition of Taehwagang Embankment Site Inclusion in River Area
Reduction of Financial Burden Over 50 Billion Won for Land Acquisition Costs

[Asia Economy Yeongnam Reporting Headquarters Reporter Kim Yong-woo] Ulsan City has won most of the long-standing lawsuit over land use with the Korea Rural Community Corporation.

On the 26th, Ulsan City announced that it won the appeal trial for 93 parcels out of 103 parcels of land for which the Rural Community Corporation filed a lawsuit claiming unjust enrichment return, alleging that Ulsan City had occupied and used the land without permission, including the Taehwagang embankment dual-purpose land.

Since 2014, Ulsan City and the Rural Community Corporation have been engaged in a legal battle for over five years over the return of amounts equivalent to rent for occupying and using land owned by the Corporation.

The 6th Civil Division of the Busan High Court (Chief Judge Park Jun-yong) ruled on the 18th in the appeal trial that the Taehwagang riverside land, including 77 parcels of embankment sites, had been managed under the old River Act with permission from the management authority, and that the Taehwagang flood control embankment (embankment) had been installed and existed since 1932. It was judged that the land was incorporated into the river area and converted to national property following the amendment and enforcement of the River Act in 1971.

Additionally, the court ruled that three parcels of land around Myeongchoncheon were installed with embankments by the river management authority, and two parcels around Yaksacheon were incorporated into the river area from December 1, 2016, following changes to the basic river plan. While loss compensation can be claimed from the state for national rivers and from provincial governors for local rivers among lands incorporated into river areas, these cannot be subjects of unjust enrichment claims.

Furthermore, for 11 parcels including Samsan-ro and other major arterial roads and 3 parcels of Namoe-dong playground, considering the status of compensation for surrounding land and whether compensation procedures were underway, the court recognized Ulsan City's acquisition by prescription.

Ulsan City emphasized in the appeal trial that since the Taehwagang embankment sites were included in the national river area, the Rural Community Corporation could not claim unjust enrichment returns from Ulsan City, and the appellate court accepted most of Ulsan City's arguments.

As a result, for unjust enrichment due to occupation and use, only 78.27 million KRW and delayed interest were recognized for 10 parcels out of 103, and for future payments, only 610,000 KRW per month was recognized for 9 parcels.

Compared to the first trial’s return amount of about 3.12094 billion KRW plus delayed interest and 31 million KRW per month, this amounts to winning over 97% of the case.

With this ruling, the land Ulsan City must acquire decreased from 103 parcels to 13 parcels, including those incorporated into the river area, reducing the financial burden by about 50 billion KRW.

Ulsan City stated, “As a public institution, the Rural Community Corporation should respect the second trial ruling and stop the wasteful legal dispute over land used for public purposes with local governments to prevent administrative and financial waste, and it is desirable to claim loss compensation from the state or others for incorporation.”

This content was produced with the assistance of AI translation services.