Exclusion of 'Substandard Construction Companies' from Seoul City Commissioned Projects... 124 Firms Sanctioned Since 2020

Investigation of 603 Construction Companies, 124 Dispositions Including 30 Contract Exclusions
Distribution of 'Self-Diagnosis Checklist' for Companies to Self-Assess Compliance with Construction Registration Standards

[Asia Economy Reporter Lim Cheol-young] Seoul City announced on the 24th that since 2020, it has taken action against 124 substandard construction companies that cause poor-quality construction by cracking down on such companies to prevent defective construction and safety accidents, excluding 30 of these companies from contracts.

In particular, this year, Seoul City investigated (verified) more than twice the number of construction companies participating in bids compared to last year, showing a disposition rate of 23.3%, which is a 5 percentage point increase from the previous year. Since the crackdown on substandard construction companies began in 2020, the disposition rate has increased from 14.7% to 18.5% and then to 23.3%.

The crackdown targets construction companies bidding on projects commissioned by the city to verify compliance with construction business registration standards. As a result of inspecting 603 construction companies, 124 substandard companies were sanctioned with measures such as business suspension and exclusion from construction contracts. The administrative actions include: business suspension for 109 companies, correction orders and registration cancellation for 4 companies, fines and penalties for 4 companies, and 7 companies currently undergoing hearing procedures for administrative sanctions.

Notably, the exclusion of 30 companies from construction contracts is aimed at preventing substandard construction companies from winning contracts, which deprives sound construction companies of opportunities and causes issues such as defective construction and safety accident risks, thereby protecting citizens' safety.

Meanwhile, Seoul City announced that it will distribute a ‘self-diagnosis checklist’ for construction companies to assess their compliance with construction business registration standards themselves. This encourages voluntary correction if deficiencies are found through self-diagnosis and helps prevent disadvantages due to lack of awareness of regulations despite willingness to comply, contributing to the establishment of a healthy construction culture.

Furthermore, Seoul City emphasized that cooperation from autonomous districts is crucial to eradicate substandard construction companies. To enhance the professionalism and convenience of district offices’ work, the city has produced and distributed a 'Construction Business Registration Standards Investigation Manual' and plans to actively conduct training for responsible staff to promote a fair and sound construction industry environment in the districts.

Choi Jin-seok, Director of Seoul City’s Safety General Office, stated, “We will enforce stricter crackdowns to ensure that substandard construction companies causing safety accidents and poor construction quality have no foothold in the city.”

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