It was reported on the 25th that the Seoul Metropolitan Government is in conflict with Korea Post over whether to pay for the use of 22 parcels of land. Korea Post claims that the Seoul Metropolitan Government is using their owned land free of charge and should receive 3 billion won annually, while the Seoul Metropolitan Government argues that the land is being used for public purposes such as roads and cannot pay for usage fees. This is the first time it has been revealed that the two sides are in such a conflict.
On the afternoon of the 24th, which was the day before, the Seoul Metropolitan Government and Korea Post discussed the matter regarding the usage fee of the parcels in Seoul at a practical level.
The Seoul Metropolitan Government has reportedly demanded a transfer of land management rights from Korea Post. Since the 22 parcels in question owned by Korea Post in Seoul are roads, transferring management rights to the Ministry of Land, Infrastructure and Transport would allow the Seoul Metropolitan Government to take over and manage them for free. According to the State Property Act, state property should be managed under a paid transaction in cases such as a transfer. However, if it is necessary to use it for public purposes such as roads and rivers, it can be used free of charge. The Seoul Metropolitan Government's position is to actively interpret related laws in this regard.
In response, Korea Post decided to create a plan after reviewing various options and deliver it to the Seoul Metropolitan Government.
The conflict between the two sides began when Korea Post imposed a compensation fee of approximately 13 billion won on the Seoul Metropolitan Government in 2022. This is because the Seoul Metropolitan Government has been using land owned by Korea Post free of charge without permission, and they intend to collect a usage fee rate of 5% along with the expenses that have not been received so far.
On the other hand, the Seoul Metropolitan Government argued that it expanded roads and sidewalks for public convenience and that some of Korea Post's land is included in the road. They also stated that local governments are delegated the management of national roads from the Ministry of Land, Infrastructure and Transport, and imposing usage fees on top of that is excessive.
The Seoul Metropolitan Government estimated that paying usage fees to Korea Post would cost about 3 billion won annually. To avoid this payment, the cost of purchasing the land is expected to be around 150 billion won. Such expenses may continue to rise in conjunction with the increase in real estate prices.
Both sides are also engaged in litigation regarding the payment of usage fees for the parcels. In 2022, the Seoul Metropolitan Government filed a lawsuit against Korea Post at the Seoul Administrative Court, requesting the cancellation of the compensation fee, seeking a confirmation of the illegality of the compensation fee imposition. Currently, an appeal trial is underway following the loss in the first trial by the Seoul Metropolitan Government.