Daegu City Inspects 4 Reconstruction and Redevelopment Associations, Uncovers 66 Violations

17 Complaints Filed · 8 Corrective Orders Issued

Daegu City has formed an inspection team consisting of experts such as the Korea Real Estate Board, a specialized verification agency for maintenance projects, lawyers, and certified public accountants to enhance transparency in redevelopment and reconstruction projects. From March to June, the team conducted on-site inspections of four redevelopment and reconstruction association maintenance sites, uncovering a total of 66 violations related to the operation of maintenance project associations.

The inspected associations include four sites: Myeongnyun District Redevelopment in Jung-gu, Daegu; Jungri District Reconstruction in Seo-gu; Reconstruction of District 44 in Daemyeong 6-dong, Nam-gu; and Reconstruction of Namdo, Lilac, Seongnam, and Hwangsil Apartments in Dalseo-gu.

This inspection selected 7 sites out of 79 that had received association establishment approval, completing inspections on 4 sites in the first half of the year. The 66 identified issues were reported to the relevant district offices overseeing the projects for actions such as prosecution, and the violation cases were communicated to all maintenance project sites.

Sangyeok Government Complex, Daegu City.

Daegu City held a disciplinary decision review committee composed of experts and decided on measures for the 66 violations: 17 cases for prosecution, 8 corrective orders, 4 recovery actions, 36 administrative guidance cases, and 1 case with no disposition.

In the ‘Association Administration’ category, association heads who borrowed funds through general meeting resolutions without specifying concrete borrowing limits and interest rates, or who borrowed funds without prior general meeting approval, were prosecuted for violating the Urban Maintenance Act. Additionally, association heads who failed to produce minutes, recordings, or video materials during general meetings or important meetings, which must be kept until liquidation, were prosecuted. Associations that did not keep minutes of the association establishment promotion committee residents’ general meetings, promotion committee meetings, and consent forms for establishing the promotion committee were issued corrective orders followed by prosecution. Furthermore, associations that failed to prepare handover documents related to the promotion committee’s work and related documents at the time of association establishment approval received administrative guidance.

In the ‘Service Contracts’ category, association heads who concluded contracts imposing burdens on members without prior general meeting resolutions or exceeding budget limits were prosecuted. Associations that wasted project funds by separately contracting service items, including construction contracts with contractors (through written investigations, etc.), were issued corrective orders. Associations that pre-contracted services expected to occur at the time of management disposition plan approval or completion were given administrative guidance.

In the ‘Accounting’ category, associations that paid travel expenses without preparing travel documents or complying with government travel expense regulations, contrary to work regulations stating “necessary expenses are paid according to government employee payment standards,” were subject to recovery actions. Associations that included meal allowances in salary payments but duplicated meal expenses under welfare and business promotion expenses were also subject to recovery actions. Associations that submitted or failed to submit settlement reports to the delegates’ meeting after the deadline set by the association bylaws received administrative guidance.

In the ‘Information Disclosure’ category, association heads who failed to disclose materials related to maintenance project implementation on the internet and by other means within 15 days after preparation or modification, or who failed to comply with disclosure periods, were prosecuted. Association heads who did not respond within 15 days to requests for inspection or copying of documents related to project implementation or failed to comply with disclosure periods were also prosecuted. Associations that failed to notify in writing by the 15th of the month following the end of each quarter or did not comply with notification periods received administrative guidance. Associations that inadequately managed documents by not recording reception numbers, notification dates, etc., on information disclosure request documents were also subject to administrative guidance.

If association heads or executives are sentenced to fines of 1 million KRW or more for violating the Urban Maintenance Act, they are automatically dismissed from their positions. Over the past two years, Daegu City conducted pilot inspections on 10 maintenance associations, taking disciplinary actions such as prosecutions for 50 out of 126 identified issues. This year, inspections continue to meet residents’ administrative demands, and from next year, the scope and number of inspection targets will be further expanded.

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