Operation of Grievance Reporting Center for Homebuyers and Partner Companies of Restructured Construction Firms

Support for Move-in Delays and Subcontract Payment Arrears

The scene at the Dunchon Jugong Apartment reconstruction site in Gangdong-gu, Seoul, where ready-mix concrete pouring was halted due to disruptions in construction material supply caused by the Cargo Solidarity general strike entering its seventh day on the 30th. Photo by Hyunmin Kim kimhyun81@

On the 22nd, the Ministry of Land, Infrastructure and Transport announced that it will operate a grievance reporting center at related agencies starting from the 22nd to support homebuyers and partner companies of construction firms undergoing restructuring.

In response to the recent increase in construction companies undergoing restructuring due to instability in the project financing (PF) market, such as the commencement of a workout by Taeyoung Construction, the government is operating the grievance reporting center to minimize damages such as delays in move-in caused by construction disruptions and delayed subcontractor payments. Grievances from homebuyers are received by the Housing and Urban Guarantee Corporation for private housing, LH for public housing, and the Korea Financial Investment Association for non-residential buildings. Grievances from partner companies are handled by professional associations and the Fair Construction Support Center (Land Management Office).

When damage reports are received, the relevant agencies, as well as related ministries such as the Ministry of Economy and Finance and the Financial Services Commission, will cooperate to provide maximum support for project normalization and financial assistance.

Kim Sang-moon, Director of the Construction Policy Bureau at the Ministry of Land, Infrastructure and Transport, stated, “Even if construction companies undergo restructuring, homebuyers and partner companies are fundamentally protected through sales guarantees and subcontract payment guarantees,” and “If actual damages are feared due to prolonged construction disruptions, we will strive to minimize damages centered on the grievance reporting center.”

The Financial Supervisory Service (Governor Lee Bok-hyun) is providing financial support services to partner companies through the Small and Medium Enterprise Financial Grievance Counseling Center.