Unauthorized Use of Public Funds at Eunma Apartment GTX Opposition Rally... Ministry of Land Requests Investigation

Ministry of Land and Seoul City Joint Inspection with Eunma Reconstruction Promotion Committee
"No Written Consent Evidence for Assembly Expenses by Household"
Amendment of Urban Maintenance Act to Prevent Abuse of Budget Approval After the Fact

[Asia Economy Reporter Noh Kyung-jo] The Eunma Apartment Reconstruction Promotion Committee and the Residents' Representative Council were found to have engaged in multiple inappropriate cases, such as using public funds for protests against the 수도권광역급행철도 (GTX) Line C without proper supporting documents.

On the 17th, the Ministry of Land, Infrastructure and Transport and the Seoul Metropolitan Government announced that their joint inspection uncovered 52 cases of non-compliance involving the Eunma Apartment Reconstruction Promotion Committee and Residents' Representative Council. Among these, 4 cases were referred for investigation, and fines were imposed in 16 cases. Correction orders and administrative guidance were issued in 7 and 25 cases, respectively.

Seongnam Eunma Apartment in Daechi-dong, Gangnam-gu, Seoul / Photo by Yonhap News

The Reconstruction Promotion Committee has demanded the rerouting of GTX Line C, arguing that the line passing under the apartment could cause safety issues. They also held protests near the residence of Chung Eui-sun, Chairman of Hyundai Motor Group, which includes the construction company Hyundai Engineering & Construction.

During this process, suspicions arose that the committee arbitrarily used public funds when chartering buses and paying participants, prompting the government to launch an investigation.

Previously, the committee claimed that the 97 million KRW spent on GTX opposition protests was disbursed from miscellaneous income after obtaining written consent from residents. However, the Ministry of Land, Infrastructure and Transport stated that there was no evidence of written consent from each household, nor proof that participants who paid fees actually attended the protests.

In response, Gangnam District Office plans to request an investigation. Under the Apartment Housing Management Act, failure to keep books and supporting documents for five years can result in imprisonment for up to one year or a fine of up to 10 million KRW.

Additionally, to use operating expenses for protests, the budget must be approved in advance through a residents' general meeting. It was confirmed that the committee arbitrarily spent operating funds and later obtained retroactive approval of the budget. The Ministry stated, "Retroactive approval of budgets is a significant matter involving cost burdens on landowners," and added, "We will amend the Urban and Residential Environment Improvement Act to prevent exploitation of legal loopholes where there are no penalty provisions."

The committee was also found to have failed to disclose information such as monthly cash flow statements and residents' general meeting minutes in 55 cases. The Ministry plans to refer these violations to investigation for breaching the Urban and Residential Environment Improvement Act. Current law mandates that the committee disclose maintenance project information within 15 days to protect the rights of landowners.

There were no supporting documents related to business relevance for the use of business promotion expenses or internal audit reports. The Residents' Representative Council also engaged in improper accounting practices in 13 cases, such as using long-term repair reserves for common facility repair and replacement costs from maintenance and elevator maintenance expenses. Violations such as bypassing the Residents' Representative Council's resolution during contractor selection procedures were also uncovered.

The Ministry of Land, Infrastructure and Transport stated, "Since numerous management failures and illegalities were found at Eunma Apartment, we will monitor the operation of the Reconstruction Promotion Committee and Residents' Representative Council and conduct additional investigations if any negligence or inappropriate matters are discovered." They added, "We will take legal action against those inciting residents with baseless claims about GTX Line C and the ground conditions."

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