Gyeonggi-do Seizes 34 Delinquent Construction Corporations' Mutual Aid Association Investment Securities

Gyeonggi Provincial Government

Gyeonggi Province has seized investment securities of 34 construction corporations with local tax delinquencies from guarantee associations, and seizure procedures have begun for 14 more. The total delinquent amount for these 48 construction corporations reaches 800 million KRW.

Earlier, since July, Gyeonggi Province requested the Construction Guarantee Association, Specialized Construction Guarantee Association, and Equipment Construction Guarantee Association to identify the status of investment securities held by delinquent construction corporations.

Investment securities are mandatorily held to maintain membership status according to the guarantee associations' articles of incorporation and basic transaction terms. Losing these securities results in losing membership status. They are essential for winning contracts and applying for guarantee bonds, with values ranging from tens of millions to hundreds of millions of KRW per company.

During the seizure process of investment securities by Gyeonggi Province, 42 corporations paid 15.1 million KRW in local taxes.

Ryu Young-yong, Director of the Tax Justice Division of Gyeonggi Province, stated, "Seizing investment securities from guarantee associations related to the construction industry is not only a direct means to collect delinquent taxes but also a pressure tool to restrict business activities. We plan to conduct a public auction of the seized investment securities by November to recover the delinquent amounts."

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