Real Estate Practice Group
Successful Damage Claim Against the State and Local Government for Soi…
2026-02-12
Successful Damage Claim Against the State and Local Government for Soil Remediation Costs in a Redevelopment Area
1. Fact Summary and Background
• Client Situation: The client (AE District Housing Redevelopment Association)
discovered severe soil contamination in land formerly owned by the State and Dongdaemun-gu
while conducting apartment construction within the project area in Seoul.
• Case Background: The Association had acquired the land through
either paid purchase or gratuitous transfer from the State and Dongdaemun-gu. During construction, pollutants such as copper, lead,
and zinc were found exceeding the threshold for soil contamination concerns,
leading the Association to incur massive remediation expenses.
• Key Review Matters: The core issues were whether the delivery of contaminated land
by the sellers (State and local government) constituted a "default of obligation (incomplete performance)" and
whether remediation liability could be sought for land that was transferred gratuitously.
2. Key Legal Issues
• Liability for Damages Due to Incomplete Performance: Whether delivering land with buried pollutants
without prior remediation constitutes a default under Article 390 of the Civil Act.
• Standard for Calculating Remediation Costs: The process of objectively calculating the weight of pollutants
and the resulting remediation costs specifically for the parcels sold by the defendants through expert appraisal.
• Scope of Liability for Gratuitously Transferred Land: Legal interpretation on whether the State or
local government can be held liable for warranty or damages regarding land
transferred gratuitously (obsolete infrastructure) under the Urban Improvement Act.
3. Execution and Achievement
• LKP’s Role and Arguments:
o Assisted by a professional appraiser, LK Partners precisely analyzed the specific burial locations,
volume, and weight of the contaminated soil to define the scope of the defendants' liability.
o LKP pointed out that the defendants (Republic of Korea and Dongdaemun-gu) failed their remediation duties
under the Soil Environment Conservation Act at the time of sale and logically proved that delivering
the land in a contaminated state was a failure to fully perform contractual obligations.
• Result for the Client: The court accepted LK Partners' arguments and rendered a partial victory for the plaintiff,
ordering the Republic of Korea and Dongdaemun-gu to pay the Association for the remediation
costs of the purchased land along with delayed interest.
• Significance of the Case:
o Established a practical legal precedent that redevelopment associations can be compensated
for remediation costs based on "incomplete performance" when pollutants are found in land purchased from the State or local governments.
o It is significant for reasonably distributing the economic burden of
unexpected environmental cleanup costs—often incurred in large-scale projects—to the original parties responsible, such as the State.







