Gyeonggi Province Uncovers and Reports Two Cases of Illegal License Lending in Construction Industry

Gyeonggi Province Strengthens Crackdown on Illegal Activities from Bidding to Completion
Focused Inspections on Registration Requirements, Direct Construction, Deployment of Engineers, and Illegal Subcontracting

Gyeonggi Province announced on October 14 that it had conducted 'Construction Site Inspections to Eradicate Negligence and Illegal Activities' from August to September and reported two construction companies to investigative authorities on suspicion of lending their business names and licenses to third parties.

Officials from Gyeonggi Province have been conducting 'Construction Site Inspections to Eradicate Negligence and Illegal Activities' from August to September. Provided by Gyeonggi Province

This inspection targeted 10 construction companies and sites contracted by the province and its affiliated public institutions. Among them, two sites were investigated in cooperation with the Provincial Resident Supervisory Group. The inspection team focused on verifying whether construction was carried out directly by the contractor, whether the companies met the registration requirements under the Framework Act on the Construction Industry, the deployment status of qualified construction engineers, and whether there were any illegal subcontracting activities.

As a result, it was discovered that some contracted companies had lent their business names and licenses to third parties, who then took a leading role in the construction work. These cases were reported to investigative authorities. Gyeonggi Province emphasized that lawful construction practices must be ensured not only during the bidding stage but also throughout the construction process, and stated its commitment to taking strong measures to eradicate the practice of license lending.

Kang Seongsup, Director of Construction at Gyeonggi Province, stated, "Lending business names and licenses in the construction industry is a serious illegal act that undermines opportunities for legitimate companies and leads to poor construction quality. We will thoroughly secure the legality and transparency of both the bidding and on-site construction processes to protect residents' safety and establish a sound construction order."

Last year, Gyeonggi Province also inspected seven construction companies, uncovering cases of business name lending, failure to meet registration requirements, and illegal subcontracting at two companies, which resulted in administrative actions and requests for investigation.

The province plans to further strengthen its management system to prevent illegal activities in the construction industry throughout all stages of public construction projects, from pre-bid investigations to on-site inspections.