Legal Protection Difficult in Case of Damages
Surge in Cases Recruiting Members, Founders, and Investors
Recently, there has been a nationwide increase in cases where groups recruit members, founders, and investors by promising to supply rental apartments at prices lower than the surrounding market rates. In response, Yeoju City in Gyeonggi Province has issued a special warning to its citizens.
According to Yeoju City on June 13, apartment construction projects must go through a series of complex administrative procedures before any promotion takes place, including: ▲ urban planning decisions, ▲ committee reviews, and ▲ obtaining building permits or approval of housing construction project plans. Even after these steps, additional permits such as ▲ approval for tenant recruitment announcements or reporting of tenant recruitment are required.
An official from Yeoju City stated, "Recently, there has been an increase in attempts to induce premature investments or contracts by presenting unconfirmed land use or building plans." The official urged, "Citizens should always verify whether the necessary permits have been obtained and exercise particular caution to avoid damages from reckless contracts or investments."
To help citizens prevent related damages, Yeoju City recommends that anyone who receives suspicious development or investment proposals should contact the relevant departments, such as the Urban Development Division at City Hall, to confirm accurate information.
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