Gyeonggi-do Uncovers 47 Apartment Complexes for Selecting Inappropriate Service Providers and More

[Asia Economy (Suwon) = Reporter Lee Young-gyu] Gyeonggi Province has identified 47 apartment complexes that improperly managed the selection of service providers through private contracts.

Gyeonggi Province announced on the 6th that through audits conducted in the first half of this year, it detected 47 apartment complexes that selected service providers within the complexes through private contracts instead of competitive bidding or misused management fees, confirming a total of 329 cases of improper practices.

Among these, the province filed complaints or requested investigations for 5 cases, while imposing fines for 131 cases, corrective orders for 74 cases, and administrative guidance for 119 cases.

This audit was conducted by the province and six cities/counties, selecting four complexes requested by residents and 43 complexes that moved in between 2017 and 2018.

The management office of Apartment A was found to have used management fees to cover construction costs listed in the long-term repair plan, which should have been paid from the long-term repair reserve fund.

The management office of Apartment B was investigated for violating current laws by signing service contracts through private contracts instead of competitive bidding.

The province recommended the Ministry of Land, Infrastructure and Transport to prepare improvement measures for the institutional shortcomings discovered during the audit process.

In particular, it requested that the apartment management information system subdivide income and expenditure details into 25 categories, as it is currently impossible to verify detailed statements, and add a minimum reserve amount system to the current system that allows apartment complexes to set their own long-term repair reserve funds by complex.

The province plans to strengthen management supervision to prevent recurrence of similar cases by compiling the audit results into a casebook and distributing it to apartment complexes subject to mandatory management.

This content was produced with the assistance of AI translation services.