Yongin City Implements Citizen Damage Prevention Measures for Local Housing Associations

[Suwon Ilbo=Reporter Choi Ki-ho] Yongin Special Metropolitan City announced on the 4th that it has established and implemented measures to prevent damage from local housing associations, cracking down on false and exaggerated advertisements and operating a "permanent counseling hotline," as cases of citizen damage caused by deceptive advertising from local housing associations have been increasing.

As of the 4th, Yongin City has 8 local housing associations that have received establishment authorization or are in stages of project approval, groundbreaking, or final inspection. Currently, 5 associations are recruiting members, including 3 in Giheung-gu, 1 each in Cheoin-gu and Suji-gu.

However, some local housing associations have been recruiting members through false and exaggerated advertisements—such as designating units and room numbers based on uncertain project plans, presenting confirmed selling prices, fronting major construction companies or misrepresenting unpurchased land as already purchased. After recruitment, they have caused problems including refusing to return contribution fees or delaying projects.

To prevent citizen damage, the city will strengthen crackdowns on illegal banners related to local housing associations daily in cooperation with district office urban landscape departments, and will strengthen punishment by indicting businesses that install illegal banners.

Additionally, the city will continuously monitor false and exaggerated advertisements from local housing associations on the internet, broadcasting, YouTube, and other platforms. When violations are discovered, the city will request corrections, and if not complied with, will impose both judicial and administrative penalties.

The city will also strengthen public awareness campaigns regarding "caution when joining local housing associations" to prevent citizen damage.

The city will require all local housing associations to provide "notices regarding local housing association precautions," and will distribute "Understanding Local Housing Associations" leaflets through administrative divisions so citizens can reference them. These leaflets include △information on local housing associations and member qualifications △membership recruitment standards △advantages and disadvantages of local housing associations △citizen damage prevention guidelines.

The city will also strengthen guidance and inspections regarding membership recruitment reports and work agent qualifications for local housing associations.

The city will strengthen reviews of project plans during membership recruitment reports, such as land ownership acquisition plans, and will verify the appropriateness of project plans through consultations with architectural societies. Additionally, the city will inspect whether bylaws and contracts of each association match, and will mandate that contracts specifically itemize refund provisions when members withdraw and the details of "joint contribution fees" that serve as the refund standard.

The city will establish and operate a "permanent counseling hotline" in the Housing Department to prevent damage from local housing associations. The permanent counseling hotline will be operated by 3 staff members in the Housing Association Team, handling △information on housing association progress △receipt of illegal reports △member qualification guidance △guidance on precautions when joining associations.

The city has taken such active measures on local housing association issues because associations, by their nature, conduct business through private contracts, and citizens often suffer damages by joining based solely on advertisements without properly confirming project details.

A city official stated, "Local housing associations have problems where the promotion committee, work agents, and construction companies do not align, and work agents deliberately delay projects to over-collect agency fees, so we have established measures to prevent citizen damage." Adding, "Since there are limitations to administrative agencies providing guidance and inspections into the internal operations of the private sector local housing associations, we ask citizens themselves to pay close attention to precautions." The official further urged, "Before joining as a member, please confirm the project promotion status through the permanent counseling hotline and make a careful decision on whether to join."