"Let's Reclaim Our Shares": Apgujeong 5 District Prepares Lawsuit Over Construction Firm's Land Ownership

Association Seeks Law Firm for Litigation Representation
Frequent Registration Errors in 1970s Apartment Complexes
Reconstruction Projects Secure Ownership Through Acquisitive Prescription Lawsuits

The Apgujeong 5 District association is taking legal action regarding registration errors held by the construction company. Although registration issues often arise in apartment complexes built in the 1970s, attention is focused on the outcome as such a problem has also occurred in Apgujeong, which is regarded as the premier redevelopment district in Korea. Other redevelopment sites in Apgujeong are experiencing similar issues, so the results of this lawsuit are expected to impact nearby projects in the future.

Perspective view of Apgujeong 5 District reconstruction. Provided by Seoul City

According to industry sources on August 20, the Apgujeong 5 District association has issued a notice to select a law firm to handle a lawsuit aimed at resolving land share registration within the redevelopment area. The association is identifying land shares still registered under the names of previous project implementers within the redevelopment area, as well as the number of units with insufficient land shares compared to similar-sized units. The notice was issued to organize the land shares of association members whose ownership remains partially under previous owners due to transfers such as sales.

Currently, out of the total area of District 5 (78,989.6 square meters), it is estimated that 179.179 square meters of Hanyang 1st Apartment and 427.767 square meters of Hanyang 2nd Apartment remain registered under the name of the construction company, BS Hanyang (formerly Hanyang). District 5, located in the 490 Apgujeong-dong area, centers around the 1,232 units of Hanyang 1st and 2nd Apartments, completed in 1978. At the time of association establishment approval, the number of association members was 1,177.

The association moved early to select a law firm to identify the cause of the problem and find a solution as the redevelopment project began in earnest. Association members must clearly secure ownership of land and buildings for the redevelopment project to proceed smoothly, including the calculation of sales prices.

An official from Gangnam District Office explained, "In apartments built around the same time as those in Apgujeong, errors often occur during manual registration transfers. The association selected a law firm to clarify the issue. If the registration error is clear, a registration correction claim can be filed, and in some cases, an acquisitive prescription lawsuit may be initiated. It appears the association is trying to identify and resolve the cause through litigation."

Associations in similar situations have resolved the issue through acquisitive prescription lawsuits. Acquisitive prescription is a system that grants ownership to someone who has possessed property for a certain period. For real estate, if the possessor is not registered as the owner, the period required for acquisitive prescription is 20 years.

In the case of Apgujeong 3 District, which is facing the same issue, the association filed a lawsuit against Hyundai Engineering & Construction to transfer land ownership. The association is demanding recognition of acquisitive prescription due to long-term possession. Of the land in District 3, a total of nine parcels (totaling 40,706 square meters) are owned by Hyundai Engineering & Construction, Seoul City, and HDC Hyundai Development Company. An industry official observed, "In the case of District 3, the plan is to resolve the shares by the end of next year, but since it is unclear where the registration problem originated, the parties may reach an agreement after assessing the current situation."

In 2022, the Banpo Jugong 1 Complex 1, 2, and 4 Districts reconstruction association filed a lawsuit against Korea Land and Housing Corporation (LH) and was recognized as the owner. At that time, LH owned 20,687 square meters of land, which remained under its name because leftover land and common facilities were not separately registered. The Seoul Central District Court ruled in favor of the association, ordering LH to transfer the land to the association.

Experts believe the association will need to resolve the issue through litigation. Attorney Kim Yerim of Law Firm Simmok explained, "In other project sites, there have been cases where lawsuits were necessary because the developer or construction company did not transfer shares during sales. Whether acquisitive prescription is recognized, or whether a third party, not the original buyer, holds ownership, often becomes a point of contention."

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