In order to be the object of sectional ownership (exclusive portion) according to the Act on Ownership and Management of Multi-unit Buildings (hereinafter referred to as “this Act”), it must have structural independence and independence in use (Article 1 of this Act). Therefore, in principle, sectional ownership cannot be established if there is no boundary wall between the exclusive portions. However, it can be the object of sectional ownership as an exception if certain requirements stipulated in this Act are met (Article 1-2 of this Act). This is called a sectional store. In the case of a sectional store, the absence of a boundary wall must be indicated in the structure column of the exclusive portion of the collective building register (Article 54, Paragraph 6 of this Act).
To establish a separate ownership right for a separate store, certain requirements stipulated in Article 1-2 of this Act must be met. First, there are restrictions on the use of the space, which are negative requirements. The separate store must be a retail facility as defined in Article 2, Paragraph 2, Subparagraph 7 of the Building Act, or a transportation facility as defined in Article 2, Paragraph 2, Subparagraph 8 of the same Act (Article 1-2, Paragraph 1, Subparagraph 1 of this Act). If a boundary wall exists, providing structural independence, it should be considered a separate building under Article 1 of this Act, and therefore, its use will not be restricted.
Meanwhile, the former Apartment Complex Act (before its amendment by Act No. 16919 of February 4, 2020) stipulated floor area requirements for a sectioned store. However, this requirement has been removed to improve convenience for small-scale apartment buildings. Therefore, sectioned stores can still be established in small buildings that do not meet the floor area requirements of the former Apartment Complex Act.
To establish a separate ownership right for a separate store, a clearly legible boundary marker must be firmly installed on the floor (Article 1-2, Paragraph 1, Subparagraph 3 of this Act). The boundary marker must be installed on the floor with a width of at least 3 centimeters, made of copper, stainless steel, stone, or other material that is not easily corroded, damaged, or worn, and must be different from the flooring of the separate store. Furthermore, the color of the boundary marker material must be clearly distinguishable from the color of the building floor (Article 2 of the Enforcement Decree of this Act).
To establish divisional ownership of a divisional store, the building number sign assigned to each divisional store must be securely affixed to the floor in a conspicuous location (Article 1-2, Paragraph 1, Subparagraph 4 of this Act). The letters on the building number sign must be at least 5 centimeters wide and 10 centimeters high. A map indicating the location of each divisional store must be securely affixed in a conspicuous location at the entrance to each floor of the building. The materials and colors of the building number signs are governed by the regulations for boundary signs (Article 3 of the Enforcement Decree of this Act).
As mentioned above, for a sectioned store to be the object of sectioned ownership, it must meet all of the requirements for use, floor, and building number signs stipulated in this Act. Because sectioned stores are not structurally independent from other sectioned buildings, it is necessary to clearly publicize the scope of ownership through the above requirements. Therefore, the floor and building number signs of sectioned stores must be installed and maintained in a manner consistent with the building register and real estate register. This Act stipulates that anyone who damages, moves, or removes boundary signs or building number signs, or otherwise renders the boundary illegible, is subject to imprisonment for up to three years or a fine of up to 10 million won (Article 65, Paragraph 1 of this Act).
Attorney Lee Yong-hwa of Ubiz Law Firm has extensive experience and deep expertise in the real estate field. Through his long practical experience, he has handled a variety of real estate-related issues and provides reasonable and practical solutions to customers.
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