Original Daejang-dong Landowners Lose 3 Billion Won Lawsuit Against Daejang-dong Group

The original landowners of the Daejang-dong area in Bundang-gu, Seongnam, Gyeonggi Province, lost a lawsuit they filed against the Daejang-dong group, claiming they suffered losses during the initial land purchase process for the development project.

Daejangdong private contractor Nam Wook, Attorney. Photo by Hyunmin Kim

원본보기 아이콘

On April 17, the Civil Agreement Division 27 of the Seoul Central District Court (Presiding Judge Kim Kyungjin) ruled against the plaintiffs in a lawsuit filed by the Jeonseonggun Sipyeonggangong Sajikgongpa (Pyeongsan clan association) of the Jeon family, seeking 3 billion won in payment from attorney Nam Wook, accountant Jung Younghak, and Cheonhwa-dongin No. 4 and 5, which they own.

Previously, in 2009, the clan association owned land in the Daejang-dong area. Before the Daejang-dong group entered the project, they reportedly signed a land purchase agreement with C7, a company that was pursuing private development at the time.

C7 was a development company that initially sought to carry out private development of Daejang-dong. Attorney Nam and accountant Jung joined the company in 2009 and were responsible for acquiring land, known as the “landowner acquisition process.” At the time, attorney Nam also served as CEO of C7.

However, when Lee Jaemyung, then-mayor of Seongnam, promoted a public development initiative, C7 withdrew completely from the project.

Claiming they suffered damages as a result, the clan association filed a payment lawsuit in December 2021. They argued that attorney Nam and others involved in the land acquisition process at the time should compensate for the damage incurred, based on the compensation clause in the land sale contract signed with C7. In contrast, the Daejang-dong group denied responsibility, asserting that they were different from C7, the contractual party.

Meanwhile, it is known that in July 2011, Lee Kanggil, who was the CEO of C7 at the time of the agreement, transferred most of C7’s shares and management rights, as well as those of other participating companies, to the Daejang-dong group and then withdrew from the project.

© The Asia Business Daily(www.asiae.co.kr). All rights reserved.