Deals & Cases
DR & AJU Draws the First Ruling on the Legal Nature of “The Land Owner’s Request for the Purchase of Land” Specified in Article 12(1) of the Electric Power Source Development Promotion Act
DR & AJU represented the defendant Korea Hydro & Nuclear Power and drew a final ruling in favor of them in compensation suits filed by the owners of the land, which was designated as an electro-source development zone for Samcheok Daejin Nuclear Power Plant.
This is the first case that the court decided the legal nature of “the land owner’s request for the purchase of land” as specified in Article 12(1) of the Electric Power Source Development Promotion Act enacted in 1978. Before this ruling, if the land owners had exercised a purchase claim, the Korea Hydro & Nuclear Power (“KHNP”) had to unconditionally pay the price of sales even in the case the relevant project was nullified. Consequently, KHNP was facing significant losses. However, DR & AJU, through persistent persuasion, successfully drew the court judgment that the request for the purchase of land specified in Article 12(1) of the Electric Power Source Development Promotion Act doesn’t define the establishment right, and even if the land owners exercise the above request for the purchase of land, KHNP does not have any obligation to pay the price of sales to the land owners unless KHNP accepts it as it is merely an application. Before this judgment, there had been no precedent about the legal nature and detailed contents of the right prescribed in Article 12(1) of the Electric Power Source Development Act. However, DR & AJU drew the judgment on this matter, through which electric source development operators including KHNP can solve the uncertainty causing a material effect on the project.
DR & AJU has executed an exclusive legal advisory contract on Samcheok Daejin Nuclear Power Plant, and Yeongdeok Cheonji Nuclear Power Plant with KHNP from 2013 up to the present while providing KHNP and the Ministry of Trade, Industry and Energy with high-level consultation on issues arising from the electric source development project. In addition, DR & AJU has won all related suits by representing them. In the future, DR & AJU will promise to provide high-level advice and the best results in the energy project area.