Audit Board Notifies Measures to Cancel Songpa-gu Regional Housing Association's Approval Due to Fraudulent Establishment

"Submission of Land Use Consent Form Without Landowner's Approval"

On the 4th, the Board of Audit and Inspection announced that it has notified Songpa-gu to prepare appropriate measures, including deciding whether to revoke the approval after a hearing process, for some regional housing cooperatives in Songpa-gu that obtained establishment approval through fraudulent means.

According to the 'Audit Report on the Guidance and Supervision of Regional Housing Cooperatives in Songpa-gu' released by the Board of Audit and Inspection on the same day, it was recently confirmed that Cooperatives A and B, which neglected to review whether they secured 80% of land use rights?a requirement for cooperative establishment approval?obtained approval by submitting land use consent forms without the consent of landowners.

This audit was conducted after 361 members of the two cooperatives filed a public interest audit request, claiming that "Songpa-gu approved the establishment of cooperatives that did not meet the establishment requirements while handling regional housing cooperative-related tasks, and failed to provide guidance and supervision despite the cooperatives recruiting members through exaggerated advertisements."

The audit results revealed that Songpa-gu neglected to review the establishment approval requirements for Cooperatives A and B, and that the cooperatives obtained establishment approval through fraudulent methods.

According to the former 'Housing Act Enforcement Decree,' those seeking approval to establish a housing cooperative must secure land use rights for at least 80% of the relevant site area. However, upon reviewing the 257 land use consent forms submitted by the cooperatives to Songpa-gu, excluding 9 consent forms that had expired, the land use rights secured fell below 80%, failing to meet the establishment approval requirements.

Additionally, 52 consent forms were identified that either had no validity period but were dated 2010 or were submitted as copies without a date. Among these, it was confirmed that 3 consent forms, originally prepared for other cooperative establishments, were submitted as copies without landowner consent by the two cooperatives 5 to 6 years later when applying for establishment approval, thereby obtaining approval. Even excluding these 3 consent forms, the land use rights secured by the two cooperatives were 77.3% and 79.5%, respectively, which is below the cooperative establishment approval requirements.

The Board of Audit and Inspection stated, "Songpa-gu neglected to review the establishment approval requirements for the regional housing cooperatives, and the cooperatives obtained approval through fraudulent means. We have requested caution for those involved in the approval process and notified Songpa-gu to prepare appropriate measures, including deciding whether to revoke the establishment approval after a hearing in accordance with the 'Housing Act' for the relevant regional housing cooperatives."

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