Land, buildings & compensation

Challenging an Indemnity for Unauthorized Occupancy of State or Public Land — Checking Actual Occupancy, Prior Notice and Extinctive Prescription

Under the State Property Act and the Public Property and Commodity Management Act, a person who occupies state or public land without a permit or a lease contract is charged an indemnity at the level of 120% of the usage fee (lease fee). If you have received a disposition imposing an indemnity, first check whether you actually occupied the land exclusively, whether prior notice and an opportunity to submit a written opinion were given before the disposition, and whether it includes a period for which the 5-year extinctive prescription (limitation period) has run. The usual way to challenge it is to file an administrative appeal within 90 days from the date you became aware of the disposition.

Procedure

  1. 1. Check the imposition details and the deadline

    In the indemnity notice, check the area, the period and the calculation method on which the indemnity is based. An administrative appeal must be filed within 90 days from the date you became aware of the disposition, so record the date you received the notice.

  2. 2. Review the fact of occupancy

    The mere fact that there is an adjacent building is not enough to find occupancy; the issue is whether you are actually using that land exclusively. Check with survey data and on-site photographs whether the occupied area is correct.

  3. 3. Check procedural defects and extinctive prescription

    Check whether prior notice and an opportunity to submit a written opinion were given before the disposition, and whether the written disposition states the legal basis and the reasons. An indemnity cannot be imposed for any part of the charged period for which 5 years have passed.

  4. 4. File an administrative appeal

    Organize the points to dispute, such as the fact of occupancy, procedural defects and extinctive prescription, and draft the written request for an administrative appeal. There are also rulings in which the entire disposition imposing the indemnity was revoked because prior notice was omitted and the reasons were not stated.

  5. 5. Settle the matter at its root through a lease or purchase

    If you need to keep using the land after the indemnity issue is settled, consider concluding a lease contract or applying to purchase the land. If it is left as it is, an indemnity may be imposed again.

Required documents

  • Administrative appeal petition (Enforcement Rule of the Administrative Appeals Act, Form No. 30); before the charge is imposed, the opinion on the advance notice of indemnity (Enforcement Rule of the State Property Act, Form No. 16)
  • Indemnity notice (written disposition)
  • Prior notice and documents on the submission of a written opinion (if received)
  • Cadastral map and survey data for the land
  • On-site photographs and materials on how the occupancy came about
  • Materials on the adjacent building, such as the building register
  • Existing lease contract and payment records (if any)

Fees

There is no government fee for filing an administrative appeal. In the market, agency fees are generally in the range of several hundred thousand won, and vary with the amount and period imposed and whether a survey is needed. We will review the notice and the on-site situation and advise you on the fee after a consultation.

Legal basis and review date

  • State Property Act, Article 72
  • State Property Act, Article 73-3
  • Public Property and Commodity Management Act, Article 81
  • Administrative Appeals Act, Article 27
  • Administrative Procedures Act, Article 21
  • Administrative Procedures Act, Article 23
  • Enforcement Rule of the Administrative Appeals Act, Form No. 30
  • Enforcement Rule of the State Property Act, Form No. 16

Checked against the statutes on

Statutes and public notices change, so each case needs to be checked individually. Statute titles are given in English for reference. The Korean statutes are the authoritative text.

Check these first

  • Record the date you received the notice so that you do not miss the administrative appeal deadline (90 days from the date you became aware of the disposition).
  • For a road site, an indemnity can be imposed even if the management authority has not acquired ownership, so a case-by-case review is needed.

Frequently asked questions

How much is the indemnity for state land?
It is charged at the level of 120% of the usage fee (lease fee) for the period of occupancy without permission. The amount is determined by the area, the officially assessed land price and the period of occupancy.
I never used the land, but an indemnity was imposed. Can I dispute it?
Occupancy is difficult to establish merely because there is an adjacent building; the issue is whether you actually occupied and used the land exclusively. You can show that there was no occupancy with on-site photographs and survey data.
The indemnity was charged all at once, going back to a period long ago.
A 5-year extinctive prescription applies to indemnities, so no indemnity can be imposed for the part beyond that period. Divide the imposition period by year and check whether extinctive prescription applies.
The notice arrived without any prior notice.
If prior notice and an opportunity to submit a written opinion were not given, or the basis and reasons for the disposition were not stated, you can dispute it as a procedural defect. There are administrative appeal rulings in which the entire disposition imposing the indemnity was revoked for these reasons.
What is the deadline for challenging an indemnity?
An administrative appeal must be filed within 90 days from the date you became aware of the disposition and within 180 days from the date of the disposition. If the deadline passes, the appeal is dismissed.

Contact us

Hwang Yunsang Administrative Office in Songdo, Incheon prepares and submits administrative documents and explains the procedure. If your situation is similar, send us a message.

📍 2697, 26F POSCO Tower-Songdo, 165 Convensia-daero, Yeonsu-gu, Incheon, Republic of Korea · 📞 010-3374-2687 · 🌐 hwangadmin.com

This guide is general information based on public sources. Requirements, documents and deadlines differ by case and by the competent agency, so please confirm them before you proceed.