Controversy Over Illegal Promotion, Investigation Through Joint Inspection Team
Sanctions Possible Including Bid Restrictions for Illegal Activities
Jung-gu, Seoul conducted an educational session last month for union members and construction company officials on promotional methods and enforcement measures in case of violations. Provided by Jung-gu.
Jung-gu, Seoul (District Mayor Kim Gil-seong) announced on the 1st that it has formed a joint inspection team to thoroughly investigate the facts regarding the illegal promotional controversy during the selection process of the contractor for the Sindang 10 District housing redevelopment project, and plans to take administrative measures based on the results.
The Sindang 10 District housing redevelopment project, consisting of about 1,400 households, is the "Sintong Planning No. 1 project site." Six construction companies attended the contractor bidding briefing held on the 23rd of last month, showing keen interest.
In response, the district introduced a public promotion system to prevent overheating of the bidding competition and decided to conduct promotion through live commerce on the official social networking service (SNS) of the association. On the 12th of last month, education on promotional methods and enforcement against violations was provided to association members and contractor representatives.
The construction companies submitted pledges to comply with the public promotion system, promising fair competition, and the association and district office jointly operated a task force and a reporting center to strengthen efforts to eradicate illegal activities.
Despite these efforts, as suspicions of unfair practices such as individual promotions by some construction companies continued, the district decided to take strict action.
The joint inspection team will conduct a full investigation into unfair practices and provide the construction companies with an opportunity to explain themselves depending on the findings. This is to thoroughly eradicate illegal activities and prevent project delays caused by unnecessary disputes.
Additionally, at the request of the association, the district plans to review the legality through the "Urban Dispute Mediation Committee" and recommend the necessary scope of sanctions. The Urban Dispute Mediation Committee is composed of experts with extensive experience in redevelopment projects, such as lawyers, professors, architects, and appraisers, in accordance with the "Act on Maintenance and Improvement of Urban Areas and Dwelling Conditions," and is expected to make strict judgments and sanctions on illegal activities from a professional and objective standpoint.
The amended "Act on Maintenance and Improvement of Urban Areas and Dwelling Conditions," which took effect on July 31, stipulates strong penalties such as bidding restrictions if illegal activities are detected during the contractor selection process, enabling strict sanctions.
District Mayor Kim Gil-seong stated, "There can be no exceptions in sanctioning illegal activities," and added, "We will fully utilize supervisory functions to strictly monitor and take action to ensure that association members do not suffer from reckless competition among construction companies."
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