Mokpo City Issues Administrative Guidance on Excess Collection Settlement of Four Major Insurances by Apartment Management Companies

Settlement Measures for Overcharged Amounts in Consultation with Resident Representative Meeting

[Asia Economy Honam Reporting Headquarters Reporter Jeong Seunghyun] Mokpo City, Jeollanam-do, confirmed that among 17 companies managing 116 apartment complexes under consignment management over the past five years, 9 companies managing 70 complexes had an overcollection amounting to 686 million KRW in the four major insurance premiums, and administratively guided the consignment management companies to settle the accounts.

According to the city on the 6th, the overcollected amounts for the four major insurance premiums were 257 million KRW for the National Pension, 326 million KRW for Health Insurance, 18 million KRW for Employment Insurance, and 8.5 million KRW for Industrial Accident Insurance.

The four major insurance premiums are billed by the consignment management companies based on the workers' current salaries, while the Social Insurance Corporation imposes and collects premiums based on the workers' year-end adjusted salaries from the previous year.

The consignment management companies are supposed to settle accounts with the Social Insurance Corporation every April and July and with the apartment complexes, but failure to do so resulted in the overcollection.

The city notified the consignment management companies and apartment rental business operators of this fact, and two consignment management companies have completed the settlement.

For some consignment management companies, the city is first promoting settlement for the workers' portion, and for sale apartments, it has notified the resident representative meetings to verify the data and take measures to negotiate and settle accounts with the consignment management companies.

Since rental apartments are contracted between rental business operators and consignment management companies, the city notified the rental business operators to settle accounts with the consignment management companies, and plans to notify tenant representative meetings so residents can monitor and review the information themselves.

Min Kyungjong, head of the Mokpo City Apartment Management Team, stated, “If consignment management companies and rental business operators do not settle accounts, we will actively provide administrative guidance, including filing complaints, to prevent any damage to residents from the overcollected four major insurance premiums.”

As a result of an internal consulting management fee audit, regarding the embezzlement and breach of trust amounting to 271 million KRW by a consignment management company, concerning the recently controversial A Apartment, the consignment management company denies the allegations and there are conflicting claims, so the city requested an investigation by the Mokpo Police Station for an accurate inquiry.