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National Assembly Legislation

  • Act on the Improvement of Urban Areas and Residential Environments
    • Competent Ministry : Ministry of Land, Infrastructure, and Transport
    • Advance Publication of Legislation : 2019-03-25
    • Opinion Submission Deadline : 2019-04-08
Reasons for Proposal

The current Act prescribes that in case of a rearrangement project such as a reconstruction or a redevelopment project, etc., owners of land, etc., may consent to the constitution of the committee of promoters for establishment of an association, the constitution of resident representatives’ meeting, selection of contractors, etc., by providing written consent. During this process, however, employees (OS personnel) of outsourcing businesses (OS businesses) contracted with constructors to advertise the selection of contractors, etc., infringe upon the right of association members to make rational decisions through unfair methods such as trying to appease them with exaggerated, distorted or false information or providing money or valuables, etc., while consistently coming into contact with association members to obtain written consent.

 

Therefore, this proposal aims to: prohibit an employee of an outsourcing company contracted with a constructor from obtaining written consent; to impose an obligation on a constructor to manage and/or supervise and, in case of violation, to order the cancellation of the contractor selection; to impose a penalty surcharge not exceeding 20/100 of the construction costs stated in the contract between the project implementer and the contractor, and to punish an employee of an outsourcing company which has violated these provisions by imprisonment not exceeding three years, or by a fine not exceeding thirty million won (Article 36, Article 113-2, Article 132-2, and Article 136).

Major Provisions

Methods, of Obtaining Consent from Owners of Land, etc. (Article 36), Order to Cancel Contractor Selection or Penalty Surcharges (Article 113-2), Obligation of Constructors to Manage and/or Supervise (Article 132-2).


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