The Ministry of Land, Infrastructure and Transport announced on the 10th that it will begin joint special inspections with relevant agencies starting on the 11th to eradicate various illegal and unfair practices occurring during the regional housing association (Jihutak) project process and to prevent damage to members.
The Ministry of Land, Infrastructure and Transport has been conducting a comprehensive inspection of the 618 associations currently in progress through local governments since the end of June due to persistent chronic issues such as opaque association operations and unreasonable construction cost increases.
City, county, and district officials will inspect all illegal and unfair activities related to association operations, including false and exaggerated advertising during the member recruitment process, irregularities in the use of shared funds and financial management, and unfair practices in various contracts such as membership contracts and construction contracts.
In addition, for major business sites where member damage is expected to be significant due to the sharp increase in construction costs and shared funds, and where disputes are serious, a joint special inspection will be conducted by six agencies, including the Ministry of Land, Infrastructure and Transport, the Fair Trade Commission, the Anti-Corruption and Civil Rights Commission, local governments, the Korea Real Estate Board, and the Korea Housing & Urban Guarantee Corporation (HUG).
In particular, for business sites where fees and construction costs have excessively increased, there are plans to focus on inspecting the appropriateness of increase details and scales to support the prevention of damage to members.
Additionally, the Fair Trade Commission will inspect unfair elements related to contracts between associations and construction companies, as well as between associations and agents, and issues related to withdrawal from the association and refunds. The Anti-Corruption and Civil Rights Commission plans to investigate the causes of disputes and support smooth project implementation.
This reality inspection and special joint inspections are scheduled to be carried out by the end of August. If illegal and unfair practices are detected, measures will be taken in accordance with relevant laws, such as correction requests and fines, and judicial actions, including referrals for investigation, will be pursued if necessary.
Kim Gyu-cheol, Deputy Minister of the Ministry of Land, Infrastructure and Transport, said, "Cases of damage to members related to the Jihutak project continue to arise," adding that he expects this inspection to contribute to eradicating illegal and unfair practices and to protecting the rights of members and creating a healthy environment for the Jihutak project. He further noted, "Based on the inspection results, we also plan to devise improvement measures for the system regarding Jihutak."