Seoul City Uncovers 550 Violations in Comprehensive Investigation of Regional Housing Cooperatives

The Seoul Metropolitan Government conducted a fact-finding investigation to address corruption issues in regional housing cooperatives and protect cooperative members, uncovering over 500 violations.

The city announced on November 7 that it had investigated all 118 regional housing cooperatives in Seoul over a five-month period starting in May, identifying 550 cases of improper conduct and initiating administrative actions.

원본보기 아이콘

Among the violations, the largest category was “inadequate regulations or improper service contracts and accounting records,” accounting for 331 cases, for which the city plans to issue administrative guidance. For 89 cases involving insufficient information disclosure or failure to prepare performance reports and ledgers, the city will proceed with criminal complaints.

In addition, 14 cases will be referred for investigation. Although the total number of violations identified decreased compared to the previous year (618 cases), the number of cases referred for investigation increased by 12. The city has decided to respond proactively to minimize harm to cooperative members. Furthermore, to prevent damages caused by members not being informed of the investigation results, the city will closely monitor each cooperative’s disclosure of results and submission of information disclosure records.

Of the 15 project sites where the investigation could not be conducted, the city will immediately file criminal complaints without prior notice against the 13 sites that have not been investigated for two consecutive years.

For long-delayed projects whose sunset deadlines have passed, the city will order dissolution meetings and proceed with phased clean-up measures. Since the city implemented management measures for regional housing cooperative project sites in November last year, five projects have been terminated so far.

Choi Jinseok, Director of Housing at the Seoul Metropolitan Government, stated, “We will continue to improve the system and conduct on-site inspections until transparent information disclosure and fair procedures are established in regional housing cooperative projects. We will also take active measures regarding identified violations to do our utmost to prevent harm to cooperative members.”

© The Asia Business Daily(www.asiae.co.kr). All rights reserved.