In the Gwangju Collapse Accident, Lee Jae-myung Says "Paper Company Swarm Bidding is the Main Cause of 'Poor Construction'"

Lee Jae-myung, the Democratic Party presidential candidate, is announcing policy pledges related to Incheon City at Kkum Bakery in Jung-gu, Incheon, on the afternoon of the 14th. Photo by the National Assembly Press Photographers Group

[Asia Economy Reporter Koo Chae-eun] Lee Jae-myung, the presidential candidate of the Democratic Party of Korea, mentioned the collapse accident of a newly built apartment exterior wall in Gwangju on the 16th, stating, "The problem of 'poor construction,' a chronic issue in the construction industry, has been blatantly exposed. The swarm bidding by paper companies, which have become hotbeds of construction corruption, is the problem."

On the same day, Lee said on Facebook, "One day, suddenly, 16 general construction companies with similar names appear in a quiet, sparsely populated area. They split companies to create paper companies to sweep public bids." He also posted photos of the said paper companies.

Lee pointed out, "This swarm bidding by such paper companies not only destroys fair market order and forms a multi-level subcontracting and low-wage structure at construction sites, but the costs to maintain these 'fake construction companies' are reflected in the sale prices, contributing to the rise in real estate prices. If an unqualified company wins the bid, it eventually leads to poor construction, causing disasters that threaten the lives of the people, like the apartment wall accident in Gwangju."

He introduced the 'Pre-Inspection System,' which he implemented during his tenure as Governor of Gyeonggi Province to block paper companies, stating, "From October 2019 to September 2021, 245 companies were caught, and administrative measures such as business suspension and deregistration were taken against 161 companies." He also revealed, "The bidding participation rate from January to September last year decreased by 19.2% compared to the same period in 2019 before the pre-inspection system was introduced, increasing the chances of sound construction companies winning bids accordingly."

Lee said, "The pre-inspection system has spread not only to 31 cities and counties in Gyeonggi Province but also to Seoul and Chungbuk, becoming a new standard to correct unfairness in the construction industry," adding, "We will expand this proven effective policy nationwide and simultaneously improve the system to prevent construction corruption from taking root." He also stated, "We will vigorously promote various policy alternatives to correct unfairness in the construction industry, such as the public interest reporting system and post-evaluation system," emphasizing, "There will be no compromise in protecting the lives of the people."

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