Gyeonggi-do Promotes Disclosure to Residents on Whether Apartment Complex Managers Have Joined Damage Compensation Guarantees

Gyeonggi Province is promoting a plan to disclose to general residents whether the heads of apartment management offices have subscribed to liability insurance. Graphic provided by Gyeonggi Provincial Government

[Asia Economy (Suwon) = Reporter Lee Young-gyu] Gyeonggi Province is promoting a plan to disclose to residents whether housing managers assigned as management office heads have subscribed to guarantee insurance, a legal safety device to minimize damage in case of incidents such as embezzlement of management fees in apartment complexes.

On the 8th, Gyeonggi Province announced that it submitted a revision bill of the Apartment Complex Management Act containing this content to the Ministry of Land, Infrastructure and Transport.

The core of the proposal is to make the guarantee setting proof documents public on the apartment complex’s internet homepage and bulletin boards by building so that residents can know whether housing managers have set up damage compensation guarantees.

Housing managers assigned as management office heads must subscribe to guarantee insurance or mutual aid to compensate for property damage caused to residents due to intentional or negligent acts in the course of their duties, according to Article 66 of the Apartment Complex Management Act.

However, since housing managers submit the guarantee setting proof documents only to the chairperson of the residents’ representative meeting (in rental housing, the rental business operator; if there is no residents’ representative meeting, the mayor, county governor, or district head), only specific individuals can verify whether the guarantee is subscribed, and actual residents could not know whether damage compensation guarantees related to apartment complex management were set.

If this proposal leads to system improvement, residents will be able to easily check whether damage compensation guarantees are subscribed to, minimizing damage in case of accounting fraud (such as embezzlement of management fees) in apartment complexes.

The province explained that this is necessary not only to satisfy residents’ right to know and alleviate anxiety about accounting fraud damage but also because residents can jointly verify whether guarantees are set.

Earlier, in September and October, the province proposed two system improvement plans to the Ministry of Land, Infrastructure and Transport, including the introduction of electronic lottery for selecting housing management companies and operators and the establishment of a nationwide unified electronic document system.

Ko Yong-su, head of the Apartment Complex Division of the province, said, "Since damage caused by accounting fraud in apartment complexes affects residents, we prepared and proposed this damage compensation guarantee system improvement plan to protect residents." He added, "We will continue to discover and propose system improvements to protect residents’ rights and prevent management fraud, striving to create a transparent and efficient apartment complex management culture."

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