This Year, 80% Defect Judgment Rate in Apartment Complexes... Samdo Comprehensive Construction Ranks First in Defect Judgments

This Year’s Defect Judgment Rate Increases Annually to 80%
Defect Dispute Case Applications Expected to Rise from 3,313 to 4,679

It was revealed that 8 out of 10 defect claims for apartment complexes this year were judged to be defects. The defect judgment rate this year (as of August) has increased compared to previous years, marking the highest level since the statistics began in 2019. The construction company with the highest defect judgment rate in the past six months was Samdo Comprehensive Construction.

The Ministry of Land, Infrastructure and Transport announced on the 15th the status of defect handling for apartment complexes submitted to the Defect Review Dispute Mediation Committee and the defect judgment results by major construction companies for the second half of 2024 (third quarter). The committee has been operating since 2009 to resolve disputes related to defects in apartment complexes, reducing inconvenience for residents and preventing the spread of damage.

The defect judgment rate for apartment complexes has been steadily increasing since 2020. This rate decreased from 50.7% in 2019 to 49.7% in 2020 but rose to 68.3% in 2021, 71.9% in 2022, and 75.1% last year. The defect judgment rate for this year, as of August, is 80.0%. The number of defect review cases received includes re-examinations.

The number of defect dispute cases has also been increasing. As of August this year, 3,119 defect dispute cases were submitted to the committee, with an estimated total of 4,679 cases by the end of the year. In 2022, there were 3,027 cases, and last year, 3,313 cases.

The committee processes about 4,400 cases annually since 2019. The number of cases processed this year up to August is 3,525.

Among the types of recognized defects, functional failure accounted for the largest proportion at 14.01%. This was followed by lifting and detachment (12.1%), cracks (10.7%), condensation (8.4%), leakage (7.8%), and contamination and discoloration (7.3%).

From March to August, the construction company with the highest defect judgment rate was Samdo Comprehensive Construction (888%). This was followed by Taegok Comprehensive Construction (657%), Woori PMC Comprehensive Construction (588%), Yoomyung Comprehensive Construction (400%), and Lime Comprehensive Construction (271.4%).

Looking at the cumulative data over five years from September 2019 to August this year, Jiwoo Comprehensive Construction (2660%), Jaehyun Construction Industry (2300%), Hyesung Comprehensive Construction (1300%), Yubaekwoon Comprehensive Construction (742%), and Jihyang Comprehensive Construction (732.6%) had the most defects.

The defect judgment rate is calculated by dividing the number of detailed defect judgments by the total number of supplied households in the complexes judged to have defects. This rate was disclosed for the first time in this announcement. This measure was taken in response to criticism that construction companies with large supply volumes had many defect judgments.

Meanwhile, from March to August, the construction company with the highest number of defect cases was Hyundai Engineering (118 cases). This was followed by Jaehyun Construction Industry (92 cases), GV Comprehensive Construction (80 cases), Lime Comprehensive Construction (76 cases), and Samdo Comprehensive Construction (71 cases).

From September 2019 to August this year, the company with the highest cumulative number of defect judgments was GS Construction (1,639 cases). Next were Gyeryong Construction Industry (590 cases), Daebang Construction (523 cases), SM Shipping (491 cases), and Daemyung Comprehensive Construction (361 cases).

Kim Young-ah, Director of the Housing Construction Supply Division at the Ministry of Land, Infrastructure and Transport, said, "We will shorten the dispute resolution period of the committee through rapid handling of major defects and restructuring of the defect management information system."