"Church Demolition and Reconstruction in Redevelopment Area... Not Subject to Development Charges"
[Asia Economy Reporter Seongpil Cho] A court ruling has determined that redevelopment charges cannot be imposed on projects involving demolishing an existing church and constructing a new one, even if the project takes place within a redevelopment district.
On the 7th, the Administrative Court of Seoul, Administrative Division 4 (Chief Judge Mi-yeon Jo) ruled in favor of the Presbyterian Church of Korea Saemunan Church in a lawsuit against the Jongno District Office seeking cancellation of the imposed redevelopment charge. The court stated, "The decision to impose redevelopment charges solely because the church reconstruction was carried out in the form of a redevelopment project is unjust," and added, "It is preferable to consider the actual content of the project and conclude that it does not fall under the scope of redevelopment charges."
Previously, Saemunan Church applied to the Jongno District Office for project implementation approval to demolish the existing church building and construct a new church on land designated as a redevelopment zone in 2014. At that time, Saemunan Church could not obtain a building permit under the Building Act to construct the building and had to receive approval under the Urban and Residential Environment Improvement Act. Saemunan Church obtained project implementation approval according to the law and completed the building in March 2019. However, in September of the same year, the Jongno District Office imposed a redevelopment charge of 3.35 billion KRW, claiming the church's project fell under the urban environment improvement project. Saemunan Church filed a lawsuit challenging this decision.
In court, Saemunan Church argued, "Since the religious facility was constructed on land already used as religious land, it does not fall under the scope of redevelopment charges." The court accepted Saemunan Church's argument, citing that the church was located within a redevelopment project area and was compelled to build the church building under the Urban and Residential Environment Improvement Act, with no intention of gaining redevelopment profits.
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The Jongno District Office claimed that Saemunan Church was able to acquire national/public and private land through this project, but the court rejected this, stating, "This was merely based on the Urban and Residential Environment Improvement Act, and the church installed new maintenance infrastructure at its own expense and transferred it to Jongno District free of charge."
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