Relationship Between the Manager of a Superstore and the Association of Unit Owners of a Condominium in a Superstore

When a superstore takes the form of a condominium, the overlapping authority between the manager of a superstore and the association of unit owners of the condominium leads to legal conflicts. Article 12, Paragraph 4 of the Distribution Industry Development Act stipulates that matters related to divided ownership shall be governed by the Act on Ownership and Management of Condominium Buildings, while other aspects of superstore maintenance shall be subject to the Distribution Industry Development Act. However, since the concept of “matters related to divided ownership” is not clearly defined, ongoing confusion arises in practice. This study seeks to clarify the legal concept of “matters related to divided ownership” and examines the relationship between the manager of a superstore and the association of unit owners of the condominium through the following key issues. First, while the manager of a superstore has the authority to maintain common areas, changes to common areas directly affect the interests of unit owners and thus fall outside the manager’s authority. However, if the association of unit owners delegates such authority through a resolution or regulation of the association, the manager of a superstore may carry out common area changes within the designated scope. Second, revenue generated from parking fees or leases of common areas should, in principle, belong to unit owners. However, given that tenants bear the cost of maintenance and repairs of common areas, a portion of the revenue should also be allocated to them. Third, the manager of a superstore may collect management fees from tenants for the upkeep of the superstore. However, in cases where a shop remains vacant, the unit owner still benefits from the maintenance of the superstore. Therefore, it is necessary to impose a certain portion of the management fees on the unit owner of the vacant shop. Additionally, unit owners who bear management fees should have the right to inspect and copy accounting records, similar to tenants. Fourth, Reserves for Long-term Repairs and Deposit for Management Expense are assets of the association of unit owners and fall under “matters related to divided ownership.” Consequently, unit owners are responsible for their payment, and the association determines their expenditure. Therefore, the manager of a superstore does not have the authority to collect them. However, if such responsibilities are delegated through a resolution or regulation of the association, the manager may carry out these tasks within the delegated scope. Fifth, restrictions on business are closely related to the value of the shops and are therefore considered “matters related to divided ownership.” Accordingly, the manager of a superstore cannot establish or enforce business restrictions, nor approve changes that violate existing restrictions. However, if a collective order concerning business restrictions has been established within the superstore, the manager of a superstore may take measures such as business suspension against violations of these restrictions. By analyzing these key issues, this study aims to define the scope of authority between the manager of a superstore and the association of unit owners of the condominium, thereby proposing solutions to mitigate legal conflicts in practice. Through these efforts, the study is expected to contribute to the efficient operation of superstores and the establishment of legal stability.

Authors

Publication Details

Journal
Korean Institute for Aggregate Buildings Law
Published
2025-02-28
DOI
https://doi.org/10.55029/kabl.2025.53.103
Primary Topic
Underground infrastructure and sustainability
Type
article
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article

Relationship Between the Manager of a Superstore and the Association of Unit Owners of a Condominium in a Superstore

Young Doo Kim
Korean Institute for Aggregate Buildings Law
Underground infrastructure and sustainability
article

Relationship Between the Manager of a Superstore and the Association of Unit Owners of a Condominium in a Superstore

Young Doo Kim
article en

Abstract

When a superstore takes the form of a condominium, the overlapping authority between the manager of a superstore and the association of unit owners of the condominium leads to legal conflicts. Article 12, Paragraph 4 of the Distribution Industry Development Act stipulates that matters related to divided ownership shall be governed by the Act on Ownership and Management of Condominium Buildings, while other aspects of superstore maintenance shall be subject to the Distribution Industry Development Act. However, since the concept of “matters related to divided ownership” is not clearly defined, ongoing confusion arises in practice. This study seeks to clarify the legal concept of “matters related to divided ownership” and examines the relationship between the manager of a superstore and the association of unit owners of the condominium through the following key issues. First, while the manager of a superstore has the authority to maintain common areas, changes to common areas directly affect the interests of unit owners and thus fall outside the manager’s authority. However, if the association of unit owners delegates such authority through a resolution or regulation of the association, the manager of a superstore may carry out common area changes within the designated scope. Second, revenue generated from parking fees or leases of common areas should, in principle, belong to unit owners. However, given that tenants bear the cost of maintenance and repairs of common areas, a portion of the revenue should also be allocated to them. Third, the manager of a superstore may collect management fees from tenants for the upkeep of the superstore. However, in cases where a shop remains vacant, the unit owner still benefits from the maintenance of the superstore. Therefore, it is necessary to impose a certain portion of the management fees on the unit owner of the vacant shop. Additionally, unit owners who bear management fees should have the right to inspect and copy accounting records, similar to tenants. Fourth, Reserves for Long-term Repairs and Deposit for Management Expense are assets of the association of unit owners and fall under “matters related to divided ownership.” Consequently, unit owners are responsible for their payment, and the association determines their expenditure. Therefore, the manager of a superstore does not have the authority to collect them. However, if such responsibilities are delegated through a resolution or regulation of the association, the manager may carry out these tasks within the delegated scope. Fifth, restrictions on business are closely related to the value of the shops and are therefore considered “matters related to divided ownership.” Accordingly, the manager of a superstore cannot establish or enforce business restrictions, nor approve changes that violate existing restrictions. However, if a collective order concerning business restrictions has been established within the superstore, the manager of a superstore may take measures such as business suspension against violations of these restrictions. By analyzing these key issues, this study aims to define the scope of authority between the manager of a superstore and the association of unit owners of the condominium, thereby proposing solutions to mitigate legal conflicts in practice. Through these efforts, the study is expected to contribute to the efficient operation of superstores and the establishment of legal stability.

Korean Institute for Aggregate Buildings LawVol. 53
Openalex Percentile: Top 96%
Underground infrastructure and sustainability
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