"Claiming Road Occupation Compensation for Period of Construction Suspension After Notification by Administrative Agency Is Unfair"

[Asia Economy (Suwon) = Reporter Lee Young-gyu] The Gyeonggi Provincial Administrative Appeals Commission has ruled that the administrative agency's decision to charge compensation fees for road occupancy permit expiration during the period when construction was halted at the request of the administrative agency is unfair.

On the 22nd, the Gyeonggi Administrative Appeals Commission announced this decision regarding the 'Cancellation Request for Road Occupancy Compensation Fee Imposition' filed by Agency A against City B.

Agency A received road occupancy (excavation) permits from City B for Zone C from October 18, 2021, to November 19, 2021, and for Zone D from November 15, 2021, to November 30, 2021, for power distribution line-related construction.

However, on November 8, 2021, City B sent an official letter to related agencies within the jurisdiction, including Agency A, stating that "to prevent deterioration of road construction quality and inconvenience to residents, road excavation work will be suspended during the winter period (December 1, 2021, to February 28, 2022)."

Subsequently, Agency A applied to City B for confirmation of completion of the road occupancy construction on June 8, 2022, several months after the permit period had expired. City B imposed a compensation fee of 120 million KRW, including road occupancy fees and a 20% surcharge, for the period from the permit expiration date to the completion date (June 7, 2022).

According to the Road Act and related laws, if a person occupies a road without a permit or exceeds the permitted occupancy, the administrative agency is authorized to collect compensation fees amounting to 120% of the occupancy fee for the excess occupancy period.

Agency A filed an administrative appeal requesting cancellation of the decision, arguing that since construction was halted during the winter excavation restriction period, compensation fees for that period should be excluded.

The Gyeonggi Administrative Appeals Commission ruled that including the winter period during which construction was not conducted due to City B's notification in the compensation fee period was an unfair decision that imposed excessive disadvantages on Agency A, which had relied on the administrative agency's directive.

Kim Dong-wook, the Administrative Appeals Officer of Gyeonggi Province, stated, "Road occupancy is a special use involving the tangible and fixed use of a specific part of the road for a particular purpose, so imposing compensation fees when occupying without the road management authority's permit is a lawful disposition. However, if an administrative agency relies on a lawful administrative action issued by the administrative agency, that reliance should be protected, and the administrative agency must handle disadvantageous dispositions with caution."

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