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A combination residential supply agreement (the “Combination Member Sales Contract”) is not a mandatory procedure prescribed under the Act on the Improvement of Urban Areas and Residential Environments. Despite the absence of explicit statutory grounds, this practice persists in reconstruction and redevelopment projects. This leads to legal outcomes where private law contracts supersede the “public power” (Gungjeong-ryeok) of the Management and Disposal Plan, which is an administrative action that serves as the core procedure and the very purpose of improvement projects for acquiring newly constructed apartments. Consequently, a fundamental review of this phenomenon is required. Through the arbitrary private law act of the Combination Member Sales Contract, essential administrative plans, which should be controlled and planned as part of administrative actions, are effectively denied. This results in the unjust outcome whereby members are relegated to the status of persons entitled to cash compensation (loss of member status). This situation prioritizes judicial effectiveness under the superficial and formal pretext of mutual “meeting of minds” between the parties. Accordingly, A need exists to verify whether the Combination Member Sales Contract is a truly indispensable procedure from both legal and practical perspectives. Furthermore, even if its practical necessity is recognized, how the contract should be interpreted in relation to the validity of the Management and Disposal Plan must be examined. Preceding this, a discussion on the validity of the Combination Member Sales Contract system itself and the Standard Articles of Association that regulate it is warranted. Therefore, this study compares the fundamental powers through which members acquire the right to receive an allotment versus general subscribers. It addresses the inevitable practical issues linked to the necessity of these contracts. To resolve the fundamental problem of evading public law effects through private contracts, the introduction of the Japanese “Right Conversion System” should be actively considered. Specifically, this study proposes adopting a mechanism that allows the withdrawal from an improvement project only for landowners who have applied for exclusion from the right conversion plan.