Among the 568 redevelopment and reconstruction projects nationwide with selected contractors, 138 have not undergone mandatory construction cost verification. The Ministry of Land, Infrastructure and Transport plans to conduct a special inspection of 16 of these projects starting on the 19th, focusing on the cost estimation and increase processes as well as overall association operations.
On October 14, the Ministry announced that it would initiate a joint special on-site inspection with relevant agencies to eradicate illegal and unfair practices related to cost estimation and association operations during the redevelopment and reconstruction process, aiming to prevent member losses.
From August 27 to September 22, the Ministry and local governments conducted a comprehensive survey of construction cost increase rates and verification requirements across the nation’s redevelopment projects. The survey revealed that 24.3% of the 568 selected projects had not completed the required cost verification.
Based on local government applications and the survey results, the Ministry selected 16 projects for special inspection among those that had not undergone verification. The first round of inspections will take place from October 19 to 30, followed by a second round from November 9 to 20, conducted jointly by the Ministry, local governments, and the Korea Real Estate Agency.
The inspections will focus on construction costs. The Korea Real Estate Agency will examine the appropriateness of cost calculation details and reasons for increases, while local governments will investigate compliance with relevant laws and association regulations. External experts will review the appropriateness of association operations, budget execution, and contract procedures.
If any violations of the Urban Redevelopment Act or other relevant laws are identified during the inspections, the Ministry plans to issue corrective orders and administrative guidance. Should serious criminal allegations such as embezzlement, breach of trust, or fraud be discovered, the Ministry will refer the cases to investigative authorities. The results of the inspections and the types of major legal violations will be shared with association members and used for training across associations and their executives nationwide.
The Ministry and local governments will also provide administrative guidance to ensure that the remaining 138 projects, excluding the 16 selected for inspection, comply with verification procedures.
Yoon Young-jung, the Ministry's Director of Housing Maintenance Policy, stated, "There have been cases where disputes over construction costs between associations and contractors have delayed projects. We will enhance the appropriateness and transparency of the cost contract process to prevent member losses."
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.