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JIPYONG LLC

Jipyong News|News
Jipyong successfully represents a Trust Company in a Petition for Suspension of Execution of the Order to Suspend Construction
2022.11.07
On October 7, 2022, a trust company, which is the owner of a construction project, received an order to suspend construction on the grounds that it violated the provisions regarding changes to the approval and reported matters related to a warehouse facility that was being constructed at that time.

Against this backdrop, Jipyong’s Construction & Real Estate Group represented the trust company before the court to explain that (1) the construction that became subject to the construction suspension is not subject to the approval of change, (2) there is an urgent need to prevent irrevocable damage that may be incurred by the claimant (i.e., the trust company) due to the construction suspension, (3) there is no concern that the resumption of the construction has a material effect on the public good, and (4) it is not a case where it is clear that the claimant’s claims on the merits are groundless.

In particular, during the hearing proceedings in this case, in addition to the common issues raised in a dispute involving execution suspension, the issue in question was the potential damage that a trust company, not the developer, would sustain from as a result of the order of construction suspension. Jipyong’s Construction & Real Estate Group explained the structure of the construction project for warehouse facilities in which the funds are raised through project financing and the transaction is carried out through real estate management and trust, and a series of potential damage that may be incurred by the interested party and obtained the court’s decision of execution suspension on November 7, 2022.