Water Usage Surges 22-Fold... Gwangju Wins Appeal Over Water Supply Facility Contribution Fee

Gwangju High Court: "Developers Can Be Charged If Water Usage Surges, Even Within Planned Scope"

City of Gwangju Wins 8 Out of 13 Lawsuits Over Water Supply Facility Contribution Fees and Construction Charges

Regarding the case in which water consumption increased 22 times more than originally expected after a residential-commercial complex apartment was built on land initially planned for commercial facilities, the court has once again ruled that the developer can be charged a water supply facility contribution fee. The Gwangju High Court sided with the city of Gwangju, as in the first trial, thereby maintaining the legal principle in the appellate court that causation can be determined based on the actual increase in tap water usage.

According to the city of Gwangju on May 18, the Gwangju High Court recently ruled in the appeal of the lawsuit for the cancellation of the imposition of the water supply facility contribution fee: "If the water consumption after the development project significantly increases compared to the initial plan, the developer may also be subject to the contribution fee."

The water supply facility contribution fee is a system under Article 71 of the Water Supply Act, which requires those responsible for the new construction or expansion of water supply facilities to bear part of the costs.

This lawsuit began when the water consumption increased by about 22 times compared to the amount expected at the time of the land readjustment project, after a residential-commercial complex apartment was built in an area originally designated for commercial facilities. The city of Gwangju imposed the contribution fee on the developer, who then filed a lawsuit in protest.

Until now, courts have ruled that if a building is constructed within the scale and usage range originally planned during the land readjustment project, the developer is not subject to the contribution fee even if the actual water usage far exceeds the planned amount.

During the trial, the city of Gwangju argued, "If water consumption increases due to construction activities, then the developer is also a de facto cause, even if the construction was carried out within the originally planned scope." This argument was accepted in both the first trial and the appellate court.

The city of Gwangju stated that it has won 8 out of 13 lawsuits related to the water supply facility contribution fee and water service construction charges filed since 2024. Five cases are still ongoing.

The city further explained that, back in February, the Supreme Court ruled regarding the calculation of water service construction charges, stating that a discrepancy of about four times between the flat-rate estimated charge and the actual construction cost is inevitable.

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