State-run organization Korea Land and Housing Corp. (LH) has announced the establishment of an anti-cartel headquarters in an effort to combat construction collusion and address poor construction practices. This move comes after the agency’s failure to identify the absence of necessary metal bars in several underground parking lots at apartment complexes. The discovery was made following the collapse of an underground parking lot at an LH construction site in Geomdan New Town, Incheon, in April.
LH CEO Lee Han-jun relayed this information during an emergency meeting with key officials. President Yoon Suk Yeol has emphasized the importance of eradicating cartels with vested interests in the construction industry, holding them responsible for substandard construction practices that result in collapses.
To tackle the issue at hand, the newly established anti-cartel office will be located in LH’s headquarters in southern Gyeonggi Province and will be led by the head of LH’s construction safety and technology division. The office will remain operational until all cartel-related matters have been addressed. The goal is to thoroughly examine every construction project, from design to material procurement and supervision. Particularly, the team will focus on identifying any unfair privileges granted to construction companies by the previous administration and the ruling Democratic Party, along with investigating corruption, collusion, and fraudulent practices within the industry.
LH plans to conduct investigations into companies suspected of receiving preferential treatment and take legal action against those involved in the substandard construction of 15 apartment complexes. The corporation will seek support from the Korea Fair Trade Commission to probe potential bid-rigging among subcontractors. Concurrently, LH aims to enhance the role of contracting agencies and revamp the existing on-site supervision system by introducing design supervision and expanding the supervisory department. CEO Lee even hinted at implementing a one-strike policy against any misconduct by design and supervision firms.
With these measures in place, LH hopes to rectify the flawed construction practices that have plagued the organization and prevent similar incidents in the future. The corporation acknowledges the imperative of ensuring proper construction safety and investigating allegations of malpractice, as the safety and well-being of residents must be prioritized.
