The Story of Saving 50 Billion Won by Being Recognized as a 'River' Despite Using Someone Else's Land in Ulsan

Ulsan City Wins Final Victory in 6-Year Battle with Korea Rural Community Corporation
Lawsuit Over Use of Taehwagang Embankment Land ... Confirmed as 'River'
Financial Burden of Around 50 Billion Won for Land Acquisition Costs Reduced

Ulsan City Hall exterior view. (Photo by Ulsan City Hall)

[Asia Economy Yeongnam Reporting Headquarters Reporter Kim Yong-woo] Even though they used someone else's land, it was recognized as a ‘river,’ allowing the local government to save 50 billion won. How did this happen?

Ulsan City ‘won’ the six-year-long lawsuit against the Korea Rural Community Corporation over the occupation and use of surrounding land including the Taehwagang embankment road.

Ulsan City engaged in a fierce legal battle for six years in court over the ‘unjust enrichment refund claim’ lawsuit filed by the Korea Rural Community Corporation in 2014, which alleged that Ulsan City was occupying and using 103 parcels of land, including the Taehwagang embankment dual-use road, without permission on land owned by the corporation.

On November 12, the Supreme Court dismissed the corporation’s appeal with a ‘non-acceptance of appeal’ decision, resulting in Ulsan City’s final victory.

‘Non-acceptance of appeal’ is a procedural system in litigation law where the Supreme Court does not conduct a substantive review if the appeal does not include specific reasons stipulated by law.

The dismissal by non-acceptance of appeal means that the Supreme Court rejects the appeal without substantive review according to the special law on appellate procedures.

With this final confirmation of the lawsuit, Ulsan City has relieved a financial burden amounting to about 50 billion won, including land acquisition costs.

This case began with the first trial at Ulsan District Court on August 23, 2017, where it was ruled that the 77 parcels along the Taehwagang riverside and 7 parcels near Myeongchon and Yaksacheon could not be considered part of the river zone because there was no decision or notice designating them as such, and the management authority’s consent for embankment installation could not be acknowledged, so they could not be included in the river zone.

Additionally, the court did not recognize Ulsan City’s ownership of 5 parcels among the main arterial road sites and ordered Ulsan City to pay approximately 3.1 billion won in unjust enrichment to the Korea Rural Community Corporation, effectively ruling against Ulsan City.

However, the court recognized adverse possession for 11 parcels of major arterial roads including Samsan-ro and 3 parcels of playgrounds in Namoe-dong, Jung-gu.

On June 18, 2020, the Busan High Court appellate panel ruled that the 77 parcels of embankment land along the Taehwagang were installed and existed since around 1932 with the management authority’s permission under the old River Act.

It also ruled that with the 1971 amendment and enforcement of the River Act, the land was incorporated into the river zone and converted to national property.

Three parcels around Myeongchon Stream had embankments installed by the river management authority, and two parcels around Yaksacheon were incorporated into the river zone following a change in the basic river plan on December 1, 2016. The court ruled that for national rivers, compensation claims can be made to the state, and for local rivers, to the provincial governor, but unjust enrichment refund claims cannot be made, effectively overturning the original ruling and accepting Ulsan City’s argument.

Considering that most of the plaintiff Korea Rural Community Corporation’s claims were recognized in the original trial, this ruling effectively reversed the outcome in favor of Ulsan City.

In response, the Korea Rural Community Corporation filed an appeal to the Supreme Court on July 9, 2020, dissatisfied with the appellate court’s decision.

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