Goyang City Recruits Long-Term Private Rental Housing Associations... Promotion Committee Reported

Goyang Special City, Gyeonggi Province (Mayor Lee Dong-hwan) announced on the 17th that it has reported to the police and requested the Fair Trade Commission to file a complaint regarding a private business operator's recruitment of union members and the use of banners and online promotions related to a private rental housing construction project in the Deok-i-dong area of Ilsanseo-gu, citing violations of the 'Special Act on Private Rental Housing' and the 'Act on Fairness in Advertising'.

Banners and advertisements announcing the promotion of a private rental housing construction project in the Deogi-dong area of Ilsanseo-gu. Provided by Goyang Special City.

The land in the area falls under preservation management zones where the construction of multi-family housing (apartments) is prohibited under the 'National Land Planning and Utilization Act'. For apartments to be built, a land use change to urban area and an urban management plan must be preceded, but the city is not considering permitting apartment construction.

According to the 'Special Act on Private Rental Housing', before recruiting union members, the developer must secure land use rights for at least 80% of the construction site and report this to the mayor, then recruit union members through public methods.

The city views the developer's act of recruiting union members arbitrarily without securing land use rights and without reporting to the mayor as a violation.

In several regions including Pocheon City in Gyeonggi Province and Sejong City in Chungnam Province, long-term private rental housing construction projects are being pursued, but indiscriminate recruitment of union members violating related laws in areas where apartment construction is impossible is causing innocent victims.

Those wishing to invest in or join as union members in private rental housing construction projects should carefully assess risks such as securing land use rights, compliance with related laws, and potential losses of investment funds (membership fees, deposits), and make prudent decisions.

A Goyang Special City official stated, “Fearing the occurrence of multiple victims, we have reported the union member recruitment activities and false or misleading advertisements to the police and requested the Fair Trade Commission to file complaints. We will prevent victimization through multifaceted measures such as posting warnings on the city website and displaying placards along major roads.”