Exclusive
"Only Oh Se-hoon's Decision Remains": Booyoung Housing Loses Final Legal Battle Over Hannam Neighborhood Park

[비즈한국] An investigation by Bizhankook has confirmed that Booyoung Housing has definitively lost its legal battle against the Seoul Metropolitan Government to retain ownership of the Hannam Neighborhood Park site, one of the most highly coveted pieces of land north of the Han River. The implementation plan for the Hannam Neighborhood Park project is set to expire this June. For the park to be built, the Seoul Metropolitan Government must begin the land acquisition process within the remaining time, but the financial burden has surged, with the value of the site quadrupling to 460 billion won during the protracted legal dispute.

On the 27th, the Supreme Court (presided by Justice Oh Kyung-mi) dismissed the appeal filed by Booyoung Housing against the Seoul Metropolitan Government, in which the company sought to invalidate the authorization of the urban planning facility project implementation plan for the Hannam Neighborhood Park site, citing the "dismissal without proceedings" rule. The court ruled that "the appeal does not contain the grounds required by the Act on Special Cases Concerning the Procedure for Appeal, and it is deemed groundless."

The Hannam Neighborhood Park site, which has been the subject of dispute, is considered prime real estate north of the Han River. Located at 670 Hannam-dong, Yongsan-gu, Seoul, covering an area of 28,197 square meters, it sits adjacent to Hannam The Hill, which held the title of the most expensive apartment complex in Korea for seven years starting in 2014, and is located to the north of Nine One Hannam, which has since succeeded it in prestige. While the government-assessed land price for the park site was around 6.07 million won per square meter last year, the sale price of nearby apartments is approaching 200 million won per 3.3 square meters (pyeong). Booyoung Housing acquired approximately 97% of the ownership of the project site in 2014 for the purpose of housing development.

This area has been earmarked for park development since the Japanese colonial period. In March 1940, the Governor-General of Korea designated the areas of Hannam-dong, Bogwang-dong, and Itaewon-dong as public parks via a public notice. After liberation, the area was used as a base and housing for the U.S. military stationed in Korea, before being left as an empty lot when the U.S. military withdrew in 2015. Although the Ministry of Land, Infrastructure and Transport (then Ministry of Construction) determined the urban planning facility creation plan at its current scale in April 1979, the site was later considered for removal when the government established guidelines for releasing long-term unexecuted urban planning facilities (the "sunset rule") in 2015.

The Hannam Neighborhood Park project began to take concrete shape ten years ago. Despite arguments for abandoning the park project, the Seoul Metropolitan Government decided on a creation plan for the 28,197-square-meter site at 677-1 Hannam-dong in September 2015 and notified the topographical map. In April 2020, after completing the public inspection period, the city authorized the implementation plan for the urban planning facility project in June of the same year, which solidified the development plan. This implementation plan included provisions for the expropriation and use of the land owned by Booyoung Housing.

Booyoung Housing filed a lawsuit in 2015 to cancel the park creation plan decision. While the first court ruled in favor of the plaintiff, Booyoung Housing, the appellate court overturned the decision and ruled against the plaintiff. Booyoung Housing immediately appealed, but the Supreme Court dismissed the case in 2018, finalizing the loss. Unfazed, Booyoung Housing filed another lawsuit in 2020 to invalidate the authorization of the implementation plan that detailed the park creation. However, they lost both in the first trial in April 2023 and in the second trial last November.

Regarding Booyoung Housing's claim that the Seoul Metropolitan Government had abused its discretion, the appellate court ruled, "Creating a neighborhood park is meaningful as it provides a nature-friendly space for local residents that fosters health, recreation, emotional development, and urban landscape improvement, while accommodating the cultural needs and various leisure activities of the local community. Given that the surrounding area is densely packed with housing and a large-scale university hospital, and despite there being various demographics demanding parks, there is a lack of accessible neighborhood parks; therefore, the necessity of creating such a park is fully recognized."

Even after receiving the final ruling in its favor, the Seoul Metropolitan Government is facing deep concerns. This is because massive costs will need to be spent to secure the Hannam Neighborhood Park site. According to data obtained by Bizhankook through a freedom of information request to the Seoul Metropolitan Government last month, the city estimates that 460 billion won will be required for land compensation and 200 billion won for construction costs related to the Hannam Neighborhood Park project. To proceed with the project, the city must pay land expropriation compensation that is roughly four times higher than the 120 billion won known to be Booyoung Housing’s purchase price about a decade ago.

However, now that the court's decision is final, there is no reason to delay the execution of the Hannam Neighborhood Park project. Under the National Land Planning and Utilization Act, if an urban planning facility project operator, such as for a park, does not apply for land expropriation adjudication within five years from the date of the implementation plan notification, the implementation plan loses its effectiveness. The effectiveness of the Hannam Neighborhood Park project implementation plan expires this coming June, leaving only about three months. If the deadline passes, the park creation plan will return to square one, regardless of the previous lawsuits.

An official from the Seoul Metropolitan Government's Park Creation Division stated, "We have not yet confirmed the Supreme Court ruling," adding, "As this is a sensitive matter, we will need to confirm the judgment and make an internal decision."