On-site Inspection of 5 Maintenance Sites
"Monitoring and Checks by Union Members Needed"
Daegu City has strengthened the transparency of redevelopment and reconstruction projects through the supervisory functions of the management authority by forming an inspection team consisting of experts such as the Korea Real Estate Board, a specialized verification agency for maintenance projects, lawyers, and certified public accountants. From August to November, on-site inspections were conducted on the operation status of redevelopment and reconstruction association maintenance projects at five sites.
The inspection targets were Chilseong 24 District Housing Reconstruction in Buk-gu, Pyeongni 2 Redevelopment Promotion Zone in Seo-gu, Paldal Reconstruction in Buk-gu, Daebong 1-2 District Housing Reconstruction in Jung-gu, and Suseong Yongdu District Redevelopment in Suseong-gu.
This inspection selected 10 sites out of 75 that had received association establishment approval earlier this year, completing inspections on five sites in the first half and five sites in the second half. A total of 108 issues were reported to the relevant district offices in charge of the projects, and measures such as filing complaints were taken. Violation cases were also disseminated to all maintenance project sites.
On the 19th, a disposition decision review committee composed of related experts such as lawyers and certified public accountants was held to decide on the 108 pointed-out issues. The decisions included 14 cases of filing complaints, 2 cases of filing complaints and correction orders, 8 correction orders, 10 recovery actions, 66 administrative guidance cases, 1 fine, and 7 cases of no disposition.
The majority of the issues pointed out were in the accounting field, mostly involving expenditures that differed from the association’s articles of incorporation or operating regulations, or funds disbursed without prescribed regulations. These are planned to be addressed through administrative guidance or recovery actions.
Additionally, in the administrative field, cases where loans or contracts involving funds burdensome to association members were made without approval from the general meeting will be subject to filing complaints, and associations that failed to report fund borrowing will be fined.
This year, as a pilot, compliance with previously pointed-out issues during on-site inspections was also checked. For cases where previous issues were not resolved and reoccurred, enhanced penalties such as filing complaints and recovery actions will be imposed.
Next year, to prevent recurrence of pointed-out issues, Daegu City plans to expand and promote compliance inspections in collaboration with the Korea Real Estate Board, the maintenance project support organization.
Heo Ju-young, Director of the Urban Housing Bureau of Daegu City, stated, “Although the administrative office supervises association operations through on-site investigations, there are limitations. Therefore, it is necessary for association members (executives, delegates) to monitor and check whether association officials prioritize the association’s interests.” He added, “We will propose an amendment to the Urban Maintenance Act to allow suspension of business for ‘specialized maintenance project managers’ who provide insincere support and cause economic losses to the association.”
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