Busan Urban Corporation Implements Strong Measures in Response to Audit Findings on City Private Sector Participation Project

Establishing Strong Measures Including Complete Reconstruction of Poor Construction

On-site Safety and Quality Leader Meeting for Private Participation Projects Held

Busan Metropolitan Corporation (BMC, President Kim Yonghak) announced on the 24th that it plans to implement measures such as complete reconstruction of substandard construction in response to the issues raised by the Busan City Audit Committee's "Special Audit on Public Housing Construction Projects with Private Participation."

The "Special Audit on Public Housing Construction Projects with Private Participation" was conducted by the Busan City Audit Committee over 89 days from March to June, with 10 auditors reviewing 12 private participation projects currently being implemented by BMC. As a result of the audit, a total of seven issues were identified.

Among these, the public housing construction project with private participation is not a typical client-contractor relationship. Instead, BMC selects a private partner as a joint project executor through a public contest. In this arrangement, BMC provides the land and commissions and manages the construction project management service (responsible supervision), while the private partner is responsible for the design and construction through their project proposal.

BMC plans to proceed with complete reconstruction of the substandard construction identified in this special audit and will impose penalty points and other measures on the related parties, including the private partner and the construction project management service provider.

In addition, to strengthen management and supervisory responsibility, BMC will expand the construction project management service (responsible supervision), which was previously conducted quarterly, to monthly inspections including external experts. The corporation will also work to improve private partners' understanding of their responsibilities by preparing a business manual for private participation projects.

In particular, future public announcements for private participation projects will strengthen the application of penalty points for cases of substandard construction and safety accidents, aiming to prevent such issues among private partners.

A BMC official stated, "As a responsible public corporation, we will establish strong measures to prevent the recurrence of substandard construction," and added, "Starting on the 24th, we will begin the 'On-site Safety and Quality Leader Meeting' with the CEOs of private partners, and we will do our utmost to eradicate issues of substandard construction and safety accidents in the future."

Busan Urban Corporation

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