Cheongju Heungdeok Regional Housing Association Deceptively Advertised 'Brand Construction Company Construction and Contribution Fees Confirmed'

Fair Trade Commission Imposes Corrective Order

Banner advertisement of Cheongju Heungdeok Regional Housing Association concealing and omitting the scheduled construction company.

[Sejong=Asia Economy Reporter Joo Sang-don] The Cheongju Heungdeok Regional Housing Association, which recruited members for a regional housing association project without specifying the scheduled construction company and without informing that the association members' contribution fees could change, has been sanctioned by the Fair Trade Commission.

On the 15th, the Fair Trade Commission announced that it decided to impose corrective orders on the Cheongju Heungdeok Regional Housing Association and the agency DK C&D for deceptive advertising and false or exaggerated advertising regarding the scheduled construction company, members' contribution fees, and apartment brand.

According to the Fair Trade Commission, from May 2015 to February 2017, the Cheongju Heungdeok Regional Housing Association and DK C&D advertised through banners and bus ads with phrases such as "The undefeated legend of Sejong City takes its first step in Cheongju" and "Enjoy Sujain, Cheongju Heungdeok Hanyang Sujain," without specifying the scheduled construction company.

At that time, the actual scheduled construction company was Hanyang Construction, which owned the Sujain brand and had signed a "brand usage agreement" with Hanyang. The Fair Trade Commission judged that the Cheongju Heungdeok Regional Housing Association did not disclose this and thus engaged in deceptive advertising by implying that Hanyang was the scheduled construction company.

A Fair Trade Commission official explained, "Consumers were not well aware that Hanyang Construction jointly used the 'Hanyang Sujain' brand," adding, "Also, prior to this advertisement, Hanyang had constructed several Hanyang Sujain apartments in the Sejong City area, so if the scheduled construction company is not disclosed, consumers could mistakenly assume Hanyang is the scheduled construction company."

Furthermore, even after Hanyang withdrew approval for the use of the Hanyang Sujain brand, the Cheongju Heungdeok Regional Housing Association and DK C&D falsely advertised "Cheongju Heungdeok Hanyang Sujain" on the initial page of the association's website. Hanyang had approved the use of the Hanyang Sujain brand for the Cheongju Heungdeok Regional Housing Association project around July 2014 by signing a brand usage agreement with Hanyang Construction, but on March 10, 2017, due to project delays and resulting complaints at sites including Cheongju Heungdeok, Hanyang withdrew the brand usage approval.

The Cheongju Heungdeok Regional Housing Association and DK C&D also engaged in deceptive advertising regarding additional member contribution fees. From June 2015 to February 2017, through online articles and banners, they advertised "fixed contribution fees" and "around 6 million KRW per pyeong" without specifying that members' contribution fees could change during the project process. This was deceptive advertising implying that there would be no additional fees and that the price per pyeong was fixed.

The Fair Trade Commission stated that it will continue to monitor unfair labeling and advertising practices to ensure accurate information is provided when recruiting members for regional housing association apartments, and will strictly sanction violations when detected.

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