Gyeonggi Province Reports Two Construction Companies for Illegal Business Name Lending and Other Violations

Gyeonggi Province has reported two construction companies that were found to have engaged in business name lending and related violations.

On October 14, Gyeonggi Province announced that it had conducted "construction site inspections to eradicate poor and illegal practices" at 10 contractors and sites carrying out construction projects ordered by the province and its affiliated public institutions during August and September. As a result, two construction companies were reported to authorities for suspected business name lending in the construction industry.

The Gyeonggi Province inspection team focused on verifying the following: compliance with direct construction requirements, whether registration standards under the Framework Act on the Construction Industry were met, the deployment status of construction engineers, and whether there were any illegal subcontracting practices.

Through the inspection, Gyeonggi Province found that some contractors lent their business names to third parties, who then took a leading role in the construction work. These companies were subsequently reported to investigative authorities.

The Gyeonggi Province inspection team is visiting a construction site and talking with related personnel. Provided by Gyeonggi Province

Kang Seongseup, Director of Construction at Gyeonggi Province, stated, "Business name lending in the construction industry is a serious illegal act that undermines opportunities for legitimate companies and leads to poor construction quality. We will ensure the legality and transparency of the on-site construction process, along with fair bidding, to protect the safety of residents and establish a sound construction order."

Last year, Gyeonggi Province also inspected seven construction companies, uncovering business name lending, failure to meet registration standards, and illegal subcontracting at two of them, which led to administrative actions and requests for investigation.

Gyeonggi Province plans to further strengthen its management system to prevent illegal activities in the construction industry throughout the entire process, from "pre-bid status investigations for public tenders" to "construction site inspections."

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