Yongin City Launches Inspection of 13 Local Housing Cooperatives

Focused Assessment on Compliance with Recruitment Advertisements and Fund Management

Yongin City in Gyeonggi Province is set to identify illegal activities within local housing cooperatives to prevent damage to homebuyers. On the 29th, Yongin City announced that it has formed an internal inspection team and will conduct a three-week field inspection of local housing cooperatives in the area until the 17th of next month.

The inspection targets local housing cooperatives that are currently recruiting members or are carrying out projects after receiving establishment approval. By district, there are 13 locations: 7 in Cheoin-gu, 5 in Giheung-gu, and 1 in Suji-gu.

This inspection is part of recently established measures to prevent harm to members of local housing cooperatives. The inspection will examine ▲ compliance with member recruitment advertisements ▲ management of cooperative funds ▲ contract specification details ▲ reporting of performance and disclosure of materials. The city plans to guide cooperatives to prevent internal disputes and ensure transparency in their projects. A 'Local Housing Cooperative Precautions Guide' will also be distributed to be kept in cooperative offices and provided to members.

In response to the increasing cases of citizen damage caused by false or exaggerated advertisements by local housing cooperatives, the city is cracking down on such practices and operating a 'permanent consultation team.'

Yongin City has identified that some local housing cooperatives in the area recruit members through false or exaggerated advertisements, such as designating building units or presenting fixed sale prices based on uncertain project plans, claiming to be backed by large construction companies, or falsely representing land purchases that have not been made. Issues such as failure to refund contributions or project delays are also reportedly increasing.

A city official stated, "Through this inspection, we will closely examine the project progress, member qualifications, and membership contracts to ensure that citizens do not suffer any damages."