One of the most closely followed sessions at the 10th Urban Redevelopment Law & Policy Forum held in 2026 was the presentation delivered by Attorney Hong Su-im of Suhn Law Group. Under the theme “Managing Legal Risks in Urban Redevelopment Projects Through Recent Court Precedents,” Attorney Hong analyzed major legal issues arising throughout redevelopment and reconstruction projects by examining recent court decisions involving disputes in urban renewal projects. The presentation drew significant attention from industry professionals, particularly because it systematically reviewed recurring legal issues involving association management, contractor agreements, and management disposition planning from the perspective of recent case law.

Termination of Construction Contracts: “Proceeding Without General Meeting Approval Creates Serious Legal Risk”

Attorney Hong first identified contract termination with construction companies as one of the most significant legal risks in redevelopment projects, particularly when there is no fault attributable to the contractor.

According to recent court decisions, even where a redevelopment association terminates a contract pursuant to Article 673 of the Korean Civil Code, if such termination leads to changes in project costs or triggers compensation claims, prior approval through a general meeting resolution addressing potential liability for damages is required.

Attorney Hong explained:

“If an association unilaterally terminates a construction contract, it may become liable for damages. If no prior general meeting resolution exists regarding that liability, the termination itself may later be challenged as legally invalid.”

She also introduced a recent case in which a redevelopment association attempted to terminate a contractor agreement based on a safety accident that occurred at another construction site operated by the same contractor. The court ruled that such an incident could not automatically be interpreted as proof of incompetence at the project in question, and therefore refused to recognize valid grounds for termination.

“Contract termination should never be driven by emotion. It must be judged based on contractual provisions and legal requirements.”

Removal of Association Executives and Meeting Costs: A Frequent Source of Internal Conflict

Regarding internal disputes within redevelopment associations, Attorney Hong highlighted procedural issues surrounding executive removal meetings and disputes over cost allocation as recurring legal problems.

Citing recent court precedents, she explained that when association members request a special general meeting for executive dismissal and the meeting approves payment of related expenses, the association is generally responsible for covering those costs.

However, she emphasized that such reimbursement is permitted only where the expenses can be considered necessary and reasonable.

She also introduced recent court decisions addressing situations where executives facing dismissal attempt to undermine removal proceedings by convening separate meetings or organizing reelection meetings immediately after a dismissal meeting has been publicly announced.

Courts have increasingly viewed such conduct as infringing upon members’ lawful right to demand an executive removal meeting.

“In executive removal meetings, procedure matters more than outcome. If procedural defects exist, the entire resolution may become legally vulnerable.”

Management Disposition Plans: Favoring Specific Members May Lead to Invalidity

Attorney Hong also addressed legal risks arising during the preparation of management disposition plans, particularly in relation to asset valuation and allocation standards.

Referring to recent case law, she explained that when evaluating the previous asset value of commercial property owners, applying valuation methods that excessively favor certain members — such as uniformly applying arbitrary multipliers to appraised land values calculated based on apartment proportional rates — may violate the Urban and Residential Environment Improvement Act and could ultimately be declared invalid by the court.

She emphasized:

“The standards established during the asset valuation stage become the starting point for nearly every dispute that follows. Objectivity and clear legal justification must be secured from the very beginning.”

Apartment Allocation to Commercial Unit Owners in Reconstruction Projects: Clarifying Misunderstood Voting Requirements

Another practical issue discussed involved apartment allocation to commercial property owners participating in reconstruction projects, an area often misunderstood in practice.

Attorney Hong cited a recent court ruling stating that resolutions amending association bylaws to determine estimated value ratios are not matters requiring unanimous consent of all association members.

Rather, such amendments only need to satisfy the statutory voting threshold required for bylaw amendments.

This ruling was issued in the Shinbanpo 2nd Apartment Reconstruction Association case, which is currently pending final review before the Supreme Court.

Urban Redevelopment Disputes Ultimately Come Down to Procedure and Documentation

Concluding the presentation, Attorney Hong summarized the fundamental nature of redevelopment litigation as follows:

“Most urban redevelopment disputes do not arise from project profitability itself, but from procedural failures. The general meeting approval process, notice procedures, bylaw provisions, and even a single clause within a contract can become the starting point of large-scale disputes later on.”

The presentation was highly regarded by professionals involved in redevelopment practice — including association executives, redevelopment management firms, construction companies, and property appraisers — as a practical reference summarizing the legal risks that require immediate attention based on recent court precedent.

Attorney Hong’s case law analysis presented at the 10th Urban Redevelopment Law & Policy Forum is expected to serve as an important practical guide for improving legal stability throughout future redevelopment and reconstruction projects.