A Legal Study of the Implementation of Just Compensation in Korean Urban Redevelopment - Focus on the Relocation Assistance -

Major urban redevelopment projects are currently on-going to beautify the urban landscape in Seoul, which is the most densely populated metropolitan area of South Korea. In this process, massive acquisition of homes has taken place, displacing many residents who are now demanding relocation assistance. South Korean law imposes obligations upon developers to provide relocation assistance for displaced residents. However, vagueness in the statutory language causes not only confusion in the implementation of the law, but has also led to a Supreme Court decision denying displaced residents’ legal right to relocation assistance. This interpretation further expanded developer’s discretion in carrying out their statutory duty to provide relocation assistance. As a result, the current law fails to protect displaced residents from the exploitations of developers, who are often private, for-profit corporations. This Comment argues that South Korea should amend the Relocation Assistance Statute in order to ensure displaced residents’ right to housing, which derives from the Korean Constitution and international law, so that they can secure adequate and fair relocation assistance. This study analyzes the Korean Supreme Court’s interpretation of the Relocation Assistance Statute, which held that displaced residents do not have a legal right to demand relocation assistance and developers enjoy broad discretion in establishing and implementing the relocation assistance. This study argues that South Korea should amend the Relocation Assistance Statute to ensure adequate and equitable relocation assistance for displaced residents by clarifying their legal right to relocation assistance and legal obligations of developers. This study describes the Relocation Assistance Statute, and argues that although the statute imposes obligations upon developers to provide relocation assistance to displaced residents, its vagueness as to the displaced residents’ legal right to relocation assistance and developers’ duties to fulfill the legal obligation causes confusion and arbitrariness in its implementation. This study also argues that, contrary to the Court’s interpretation, relocation assistance is an integral part of the fundamental human rights recognized by the Korean Constitution and the International Covenant on Economic Social and Cultural Rights. In conclusion, this paper recommends that the Korean National Assembly amend the Relocation Assistance Statute to: 1) recognize displaced residents’ legal right to relocation assistance, 2) establish standards for adequate relocation assistance, and 3) provide appropriate and accessible complaint procedures for displaced residents