"Companies Sanctioned for Rebar Omission Win 186 LH Projects Again"

Only 9 Companies Actually Sanctioned as Execution Suspended
"Public Safety at Risk... Urgent Need to Exclude from Private Contracts and Strengthen Sanctions"

It has been revealed that companies previously sanctioned for omitting rebar have once again won contracts for projects commissioned by Korea Land & Housing Corporation (LH). As government and LH sanctions have been effectively neutralized by lawsuits seeking suspension of execution, there are growing calls for more effective enforcement measures.

According to data submitted to Assemblyman Jung Junho of the National Assembly’s Land, Infrastructure and Transport Committee by LH on September 17, 27 out of 66 companies sanctioned in August 2023 for rebar omission won a total of 186 LH project contracts between September 2023 and August this year, within the past two years.

In August 2023, a collapse occurred at an LH construction site, revealing rebar omissions in 24 districts nationwide. At the time, the Ministry of Land, Infrastructure and Transport and LH restricted the bidding eligibility of 66 construction, supervision, and design firms for periods ranging from 3 to 12 months.

In April 2023, a roof structure collapse occurred on the 1st and 2nd floors of the underground parking lot at the Incheon LH apartment construction site. Photo by Yonhap News Agency

However, 56 of the 66 sanctioned companies filed lawsuits, and with the court granting suspension of execution, the actual sanctions were halted. To date, only 9 companies have actually faced enforcement of the sanctions, while 1 company has closed down. During this period, while the sanctions remained merely on paper, the companies continued to win LH contracts without hindrance.

Of the 186 contracts awarded to sanctioned companies, 74 were through private contracts or design competitions, rather than competitive bidding, where specific companies are designated. LH explained, "These procedures were in accordance with the Enforcement Decree of the National Contract Act," but there are calls within and outside the National Assembly that companies involved in ongoing lawsuits should at least be excluded from private contracts.

LH stated, "To ensure the effectiveness of administrative measures related to major accidents, we are participating in a government consultative body, supporting institutional improvements, and will actively respond to lawsuits with companies involved in rebar omission."

Assemblyman Jung emphasized, "The omission of rebar and the resulting collapse were shocking incidents that threatened public safety and destroyed trust in construction firms," adding, "There must be effective enforcement measures against companies that are directly or indirectly responsible."

He further stated, "As problematic companies evade sanctions through lawsuits, the risk of accidents is ultimately being shifted onto the public," and urged, "The government must actively respond by excluding such companies from private contracts, strengthening enforcement measures, and pursuing claims for damages."