Party Represented by Barun Law: The debtor is an urban development project association (the "Debtor Association") that was established for the purpose of carrying out an urban development project according to Article 13(1) of the Urban Development Act. The creditor, represented by us, purchased part of the urban development project area and completed the registration of ownership transfer, thus becoming a member of the Debtor Association.

(1) Case Background

The creditor proceeded with the construction and sale of multi-family housing on the land it purchased and the buyers moved in it around December 2022. However, since the Debtor Association did not register the completion of construction under the urban development project, the creditor was unable to complete the registration of land rights for the buyers, leading to dissatisfaction from them.

In response, on April 30, 2024, the creditor applied to the Debtor Association for the access and copying of urban development project-related documents, including the minutes of the general meeting or board meeting related to the selection of a project management agency, the minutes related to the selection of a contractor, and the minutes related to the sale of reserved land. However, the Debtor Association did not comply with this request.

(2) Litigation

The creditor applied for a provisional injunction requesting access and copies of the relevant documents based on Articles 72(3) and 72(2) of the Urban Development Act.

The court ruled that the Debtor Association is obligated to allow the creditor to access and copy the following: ① the minutes of the general meeting or board meeting related to the selection of a project management agency, ② the minutes of the general meeting or board meeting related to the selection of a contractor, ③ the minutes of the general meeting or board meeting related to the sale of reserved land from the time the establishment of the Debtor Association was approved until the present, ④ the sales contract for the reserved land (or a reserved land management ledger that verifies the sale details), ⑤ the minutes of the general meeting or board meeting approving the financial statements or budget for each fiscal year since the establishment of the Debtor Association, ⑥ urban development zone designation and development plan, approval of implementation plans, ⑦ approval of land readjustment plans, and ⑧ accounting audit reports since the establishment of the Debtor Association to the present.

Recognizing that the creditor has the right to request access to and copies of the relevant documents, based on our arguments, the court determined that. Articles 72(2) and 72(3) of the Urban Development Act allow members to access and copy documents related to the designation of urban development zones, the establishment and approval of development plans (in Subparagraph 4), and other matters determined by presidential decree concerning the execution of the urban development project (in Subparagraph 5). Additionally, the enforcement decree of the same law (in Article 85-5) allows members to access and copy documents such as reserved land sale details (in Subparagraph 2), audit reports (in Subparagraph 3), and minutes of general meetings or board meetings as provided in by-laws and the articles of incorporation (in Subparagraph 5). Therefore, the documents requested by the creditor were deemed eligible for access and copying, and the creditor's right to preservation was recognized. The court also acknowledged that the Debtor Association had refused the creditor's request for access to and copying of the documents, further justifying the necessity for preservation.

We (attorneys in charge: Son Heung-Soo and Jung Ye-Il) argued that the creditor became a member of the Debtor Association from the moment they acquired ownership of the land by purchasing it from another member. Therefore, the creditor, as a "landowner or other interested party" under Articles 72(2) and 72(3) of the Urban Development Act, has the right to request access to and copies of the relevant documents.

Furthermore, we emphasized several points: ① the Debtor Association is obligated to disclose the relevant documents under Article 72(2) of the Urban Development Act but has not done so for over eight years, ② since becoming a member in 2019, the creditor has not received any notice from the Debtor Association regarding general meetings or proxy voting rights, and has therefore been unable to attend any meetings, significantly infringing on the creditor's rights as a member, ③ the Debtor Association has delayed the registration of the construction completion under the urban development project for over 15 years since its approval in 2008, causing damage to the creditor and other members, ④ there are suspicions of breach of trust by the chairman of the Debtor Association, and ⑤ Article 72 of the Urban Development Act aims to ensure transparency and prevent corruption by mandating the disclosure of key project-related information. Based on these grounds, we emphasized the necessity of the creditor’s right to request access to and copies of the documents for the purpose of monitoring the association’s operations.

This case is significant as it highlights our expertise in successfully resolving multiple motions and substantive cases concerning urban development project associations. The decision to grant the creditor's provisional injunction for document access and copying demonstrates the importance of enabling members to accurately understand the association’s operations.

In addition, in contrast to common cases of requests for access to and copies of accounting books under the Commercial Act, there have been few precedents where members of an urban development project association have requested access to related documents. This case is significant as it clarifies the scope of documents that members can request access to and affirms the members' right to access and copy them.

- Attorneys involved: Son Heung-Soo and Jung Yale