Results of a Full Survey of 112 Locations
Duplicate Service Contracts Without Information Disclosure
Cases of Sauna and Cinema Visits Using Union Funds
19 Locations Without Inspections to Be Organized
"Immediate Administrative Action... Regular Inspections to Be Implemented"
On the 22nd, the Seoul Metropolitan Government announced that it has detected a total of 524 violations and will take administrative actions following an on-site investigation of 112 sites currently promoting regional housing association projects this year.
Currently, a total of 118 regional housing associations are underway in Seoul. The city conducted on-site investigations at 6 sites in the first half of this year and has been conducting a full survey of the remaining 112 sites for nearly three months since last September.
As a result, it was found that many housing associations did not properly disclose information to their members or had duplicate service contracts or excessively paid fees. When selecting contracts or business agents that impose burdens on members, a general meeting must be held, but 93 associations failed to comply with this. There were also 39 cases that violated information disclosure obligations such as service provider selection contracts, minutes, and quarterly business performance reports. Cases were also confirmed where business promotion expenses were used for amusement parks, saunas, and movie theaters.
Seoul plans to file complaints for 86 cases including improper membership contracts and failure to submit annual fund operation plans as a result of this inspection. For 39 cases such as making major decisions without general meeting approval or improper use of business promotion expenses, fines will be imposed. In addition, there are 381 administrative guidance cases and 19 correction orders. Associations that were pointed out for the same issues as last year will be subject to immediate fines, complaints, and other administrative actions according to the Housing Act and related regulations.
For 19 sites where on-site investigations could not be conducted due to loss of contact or project suspension, orders to urge compliance with the investigation will be issued, and after a certain guidance period, the city plans to organize them through the district mayor’s authority to cancel, dissolution general meeting orders, and so on.
The results of this investigation can be checked on the Jeongbi Project Information Mongttang and the websites of the respective autonomous districts for each project site. Detailed issues by association are to be disclosed through the websites operated by each association. If not disclosed, focused management such as submission of disclosure performance will be enforced.
Seoul continuously discloses key information on its website to prevent information asymmetry between associations and their members. It also operates a Damage Counseling Support Center that provides free legal consultations and guides response measures for each case.
Han Byung-yong, Director of the Seoul Housing Office, said, "Going forward, we will regularly investigate the status of regional housing associations to prevent projects from being conducted in the dark and causing harm to innocent members, and respond in principle. We must all work together to ensure transparent operation by actively exercising members’ rights such as requesting information disclosure."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
