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TITLE Supreme Court Decision 2017Du33824 Decided June 29, 2017【Revocation of Disposition of Improvement Order (Return, etc.)】* First draft [full Text]
Summary
[1] Whether regulations on the use of donations to either social welfare foundations or social welfare facilities for any purpose other than as originally intended should be rigidly interpreted (affirmative)
[2] In a case where: (a) Party A, a social welfare foundation that establishes and operates welfare facilities for the disabled, used the foundation’s donations while undergoing reconstruction work to increase the floor space of a long-term care facility and a low-temperature warehouse; and subsequently, (b) the head of the competent gun (county), on the ground of Party A’s act constituting “use of donations for any purpose other than as originally intended,” ordered Party A to return the relevant amount to the foundation’s account pursuant to Article 40(1)4 of the Social Welfare Services Act, the case holding that: (a) notwithstanding there being room to construe expenses related to construction of a new building or extension of an existing building as falling under the “narrow facilities costs” category in which unrestricted donations are usable in view of the Ministry of Health and Welfare’s criteria for the use of unrestricted donations stipulated under the Guideline on Management of Social Welfare Foundations; (b) the lower court construed such expenses as falling under the category of “costs for acquisition of assets” in which the use of unrestricted donations are proscribed thereunder, and hence, unfavorable to Party A; and (c) in so doing, the lower court erred by misapprehending the relevant legal principle
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