Building defect investigation in Korea

A building defect investigation is a technical survey that determines whether a defect in a building is due to faulty construction or to damage during use or aging. The design drawings and specifications are compared with the actual built condition, and phenomena such as cracks, leaks and condensation are measured to record their location, extent and cause. With this material you can specify what you want the construction company to fix and how, and if negotiations stall, it also serves as the basic material for preparing a mediation application or litigation.

Not every building is required by law to have a private defect investigation, but it is needed because it provides grounds for rebuttal when the construction company does not acknowledge a defect. Under Korea's Multi-Family Housing Management Act, residents or the council of occupants' representatives can directly claim repair of defects that arise within the warranty period from the developer, and the developer must give written reasons for items it judges not to be defects. At that point you need survey results compared against the design documents and measured values in order to claim again item by item or to apply for mediation. Sources: Korea's Multi-Family Housing Management Act, Article 37 (Defect repair, etc.) — https://www.law.go.kr/LSW/lsSideInfoP.do?lsiSeq=284009&joNo=0037&joBrNo=00&docCls=jo&urlMode=lsScJoRltInfoR Enforcement Decree of Korea's Multi-Family Housing Management Act, Article 38 (Defect repair procedure) — https://www.law.go.kr/LSW/lsSideInfoP.do?lsiSeq=287261&joNo=0038&joBrNo=00&docCls=jo&urlMode=lsScJoRltInfoR

If a defect is found late and the warranty period passes, it becomes difficult to claim repair for that defect under the Multi-Family Housing Management Act. The Enforcement Decree requires the council of occupants' representatives and others to claim defect repair from the developer within the warranty period, so finding defects within the period comes first. If only temporary repairs are repeated without knowing the cause, defects recur in the same place and no record of the original condition remains for later. Not having an investigation does not take away your rights, so at least keep records of defect locations, dates, photos and filing details. Sources: Enforcement Decree of Korea's Multi-Family Housing Management Act, Article 38 (Defect repair procedure) — https://www.law.go.kr/LSW/lsSideInfoP.do?lsiSeq=287261&joNo=0038&joBrNo=00&docCls=jo&urlMode=lsScJoRltInfoR

Because repair claims under the Multi-Family Housing Management Act must be made within the warranty period, an apartment defect investigation starts by determining which type of work each defect belongs to and when its period ends. The period is counted from the date of handover to residents for the exclusive area and from the use inspection date for common areas, so expiry dates can differ even within the same complex. The developer must notify the council of occupants' representatives in writing of the expected expiry date at least 30 days before expiry, and if the survey only starts after this notice arrives, there is little time left to prepare a claim. Sources: Korea's Multi-Family Housing Management Act, Article 36 (Defect warranty liability) — https://www.law.go.kr/LSW/lsSideInfoP.do?lsiSeq=284009&joNo=0036&joBrNo=00&docCls=jo&urlMode=lsScJoRltInfoR Enforcement Decree of Korea's Multi-Family Housing Management Act, Article 38 (Defect repair procedure) — https://www.law.go.kr/LSW/lsSideInfoP.do?lsiSeq=287261&joNo=0038&joBrNo=00&docCls=jo&urlMode=lsScJoRltInfoR Enforcement Decree of Korea's Multi-Family Housing Management Act, Article 39 (Termination of warranty liability) — https://www.law.go.kr/LSW/lsSideInfoP.do?lsiSeq=287261&joNo=0039&joBrNo=00&docCls=jo&urlMode=lsScJoRltInfoR

It is best to have it done at two points: early after move-in and before each warranty period ends. Finishing and equipment defects inside units mostly show up right after move-in, and the warranty period for finishing work such as wallpaper and tiles is 2 years, so we recommend the first new apartment defect investigation before the 2-year expiry. For common areas, the housing defect investigation should start at least 6 months before the 3-, 5- and 10-year expiry dates so that the survey, report and repair claim can all be completed within the period. Surveying before the construction company begins repair work also preserves a record of the original condition. Sources: Enforcement Decree of Korea's Multi-Family Housing Management Act, Article 36 (Warranty periods) — https://www.law.go.kr/LSW/lsSideInfoP.do?lsiSeq=287261&joNo=0036&joBrNo=00&docCls=jo&urlMode=lsScJoRltInfoR Enforcement Decree of Korea's Multi-Family Housing Management Act, Table 4 (Warranty periods by type of facility work) — https://www.law.go.kr/LSW/lsBylInfoP.do?bylSeq=18195023&lsiSeq=287261&efYd=20260701&directYn=Y

HomeCheck is a registered institution specializing in safety examinations and a registered engineering business in Korea, and its special-grade and advanced-grade engineers carry out defect investigations directly. After first reviewing the existing drawings and the warranty period history, they measure defects in common areas and exclusive areas with non-destructive equipment and digital measuring instruments, and compare them with the design drawings to distinguish omitted, changed and faulty construction. In addition to apartment complexes, HomeCheck has carried out defect investigations of office buildings, neighborhood commercial facilities and parking towers, and the results are organized into a defect investigation report to present when negotiating repairs with the construction company.

A building defect investigation begins with selecting equipment suited to the phenomenon to be checked. Wall plumb and floor level are measured with a laser level, and missing insulation or hidden leaks are identified through surface temperature differences on a thermal imaging camera. To examine concrete strength or rebar arrangement, a Schmidt rebound hammer and rebar detection equipment are used together. Measured values are recorded together with the location, date and site photos, and kept as the basis for comparison with the design documents.

Yes. Parts where the actual construction differs from the drawings are a key focus of the defect investigation. Korea's defect determination criteria for multi-family housing judge defects against the design documents approved at the use inspection, and the quality of finishing materials is in principle judged against the standard at the time of the resident recruitment notice and supply contract. If the design documents are silent or inconsistent, the standard is sought in the order of the housing supply contract, the model home, the sales brochure, the special specifications and the design drawings. For each discrepancy, the effect on safety, function or appearance is also recorded. Sources: Korea's Standards for the Investigation of Defects in Multi-Family Housing, Calculation of Repair Costs and Defect Determination (MOLIT notice) — https://www.law.go.kr/LSW/admRulLsInfoP.do?admRulSeq=2100000282400 Korea's Multi-Family Housing Management Act, Article 36 (Defect warranty liability) — https://www.law.go.kr/LSW/lsSideInfoP.do?lsiSeq=284009&joNo=0036&joBrNo=00&docCls=jo&urlMode=lsScJoRltInfoR

Yes. The defect warranty period depends on the type of work in which the defect occurred and the law that applies to the building. For apartments under the Multi-Family Housing Management Act, the load-bearing structure is 10 years, and facility work is divided into 2 years for finishing work such as wallpaper and tiles, 3 years for windows, insulation and fire protection work, and 5 years for reinforced concrete, waterproofing and roofing work. For condominium buildings such as officetels and commercial buildings, under Korea's Act on Ownership and Management of Condominium Buildings, rights must be exercised within the period set by Presidential Decree, up to 10 years for defects in the main structural parts and ground work and up to 5 years for other defects. The defect investigation first confirms the building use and applicable law, then organizes the expiry date for each item. Sources: Korea's Multi-Family Housing Management Act, Article 36 (Defect warranty liability) — https://www.law.go.kr/LSW/lsSideInfoP.do?lsiSeq=284009&joNo=0036&joBrNo=00&docCls=jo&urlMode=lsScJoRltInfoR Enforcement Decree of Korea's Multi-Family Housing Management Act, Article 36 (Warranty periods) — https://www.law.go.kr/LSW/lsSideInfoP.do?lsiSeq=287261&joNo=0036&joBrNo=00&docCls=jo&urlMode=lsScJoRltInfoR Enforcement Decree of Korea's Multi-Family Housing Management Act, Table 4 (Warranty periods by type of facility work) — https://www.law.go.kr/LSW/lsBylInfoP.do?bylSeq=18195023&lsiSeq=287261&efYd=20260701&directYn=Y Korea's Act on Ownership and Management of Condominium Buildings, Article 9-2 (Duration of warranty liability) — https://www.law.go.kr/LSW/lsSideInfoP.do?lsiSeq=249285&joNo=0009&joBrNo=02&docCls=jo&urlMode=lsScJoRltInfoR

If the defect was caused by faulty construction within the warranty period, the developer must repair it at its own expense. The Multi-Family Housing Management Act requires the developer, or the construction company if a separate company carried out the construction work under a turnkey contract, to repair defects at the request of the council of occupants' representatives and others and to compensate for damage caused by the defects. Damage from use after move-in and natural aging are outside the scope of repair liability, so the cause must first be identified through a defect investigation before the party responsible can be negotiated. If opinions differ, the matter is decided by a ruling of the Defect Review and Dispute Mediation Committee or by a court. Sources: Korea's Multi-Family Housing Management Act, Article 36 (Defect warranty liability) — https://www.law.go.kr/LSW/lsSideInfoP.do?lsiSeq=284009&joNo=0036&joBrNo=00&docCls=jo&urlMode=lsScJoRltInfoR Korea's Multi-Family Housing Management Act, Article 37 (Defect repair, etc.) — https://www.law.go.kr/LSW/lsSideInfoP.do?lsiSeq=284009&joNo=0037&joBrNo=00&docCls=jo&urlMode=lsScJoRltInfoR Korea's Multi-Family Housing Management Act, Article 39 (Establishment of the Defect Review and Dispute Mediation Committee, etc.) — https://www.law.go.kr/LSW/lsSideInfoP.do?lsiSeq=284009&joNo=0039&joBrNo=00&docCls=jo&urlMode=lsScJoRltInfoR

The results are first used as the basis for a formal defect repair request to the construction company. When defect locations, photos, measured values, cause analysis, repair methods and costs are organized, they can be presented as technical material when renegotiating items the construction company has answered are not defects. If negotiation fails, the same material is used for an application to the Defect Review and Dispute Mediation Committee or for preparing litigation; whether something is a defect is decided by the committee or the court in each procedure.

A defect investigation usually takes about 1 to 3 months, depending on the size of the building and the scope of the survey. When there are many units or more common-area test items, the site survey and analysis take longer. The deliverables are a defect investigation technical report, site and defect photos and drawing analysis material, and a technical opinion is also prepared when needed.

Because fixing only the surface without identifying the cause makes it easy for the defect to reappear in the same place. If condensation and mold on a wall are due to missing insulation, replacing the wallpaper alone will soon lead to recurrence, so insulation reinforcement must be included in the repair scope. Depending on whether the cause is a design problem, poor construction, or use and management, the responsible party and repair method change, and the defect determination criteria also require repair costs to be calculated as the cost of reconstruction when omitted or changed construction has caused other defects. Sources: Korea's Standards for the Investigation of Defects in Multi-Family Housing, Calculation of Repair Costs and Defect Determination (MOLIT notice) — https://www.law.go.kr/LSW/admRulLsInfoP.do?admRulSeq=2100000282400

First check the reasons for refusal sent in writing by the construction company, rebut them item by item with the defect investigation material and claim repair again. If it still does not accept, you can apply to the Defect Review and Dispute Mediation Committee under MOLIT for a ruling on whether a defect exists or for dispute mediation, and the mayor, county governor or district head can order a developer that does not comply with a repair claim without justifiable reason to take corrective action. If the committee procedure does not resolve the matter, defect litigation is considered, and legal representation and the method of claim are decided with a lawyer. Sources: Enforcement Decree of Korea's Multi-Family Housing Management Act, Article 38 (Defect repair procedure) — https://www.law.go.kr/LSW/lsSideInfoP.do?lsiSeq=287261&joNo=0038&joBrNo=00&docCls=jo&urlMode=lsScJoRltInfoR Korea's Multi-Family Housing Management Act, Article 37 (Defect repair, etc.) — https://www.law.go.kr/LSW/lsSideInfoP.do?lsiSeq=284009&joNo=0037&joBrNo=00&docCls=jo&urlMode=lsScJoRltInfoR Korea's Multi-Family Housing Management Act, Article 39 (Establishment of the Defect Review and Dispute Mediation Committee, etc.) — https://www.law.go.kr/LSW/lsSideInfoP.do?lsiSeq=284009&joNo=0039&joBrNo=00&docCls=jo&urlMode=lsScJoRltInfoR

Yes. A defect investigation report can be submitted as evidence in legal disputes. In litigation, the court examines the report submitted by a party together with the court-appointed appraisal and other evidence, and judges whether a defect exists based on its free evaluation of the evidence. When objecting to a ruling of the Defect Review and Dispute Mediation Committee, an opinion written by a safety examination institution or relevant expert must be attached, and here too the defect investigation results serve as the basis. As a registered institution specializing in safety examinations, HomeCheck prepares reports backed by survey evidence and measurement data. Sources: Korea's Civil Procedure Act, Article 202 (Principle of free evaluation of evidence) — https://www.law.go.kr/LSW/lsSideInfoP.do?lsiSeq=252393&joNo=0202&joBrNo=00&docCls=jo&urlMode=lsScJoRltInfoR Korea's Multi-Family Housing Management Act, Article 43 (Defect review, etc.) — https://www.law.go.kr/LSW/lsSideInfoP.do?lsiSeq=284009&joNo=0043&joBrNo=00&docCls=jo&urlMode=lsScJoRltInfoR

To calculate the fee, we need the building's total floor area, the number of units, the survey scope, and the equipment and staff to be deployed. Whether the survey covers common areas and unit interiors, how many sample units there are, and whether any exterior wall areas require aerial work equipment are also reflected in the fee. If you commission additional work such as repair cost calculation or report supplementation, those costs are included in the quote. Send us the drawings and the defect list, and we will advise the final fee after a preliminary consultation and site check.

Lifting or falling exterior materials are also covered. Because falling exterior stone or curtain wall can injure people, the anchorage condition and truss construction are checked against the drawings and construction records. The Enforcement Decree of the Multi-Family Housing Management Act also defines detachment caused by faulty construction as a type of defect by facility work. Parts that could not be checked because of difficult access are marked separately in the results so that the scope of any additional survey can be decided. Sources: Enforcement Decree of Korea's Multi-Family Housing Management Act, Article 37 (Scope of defects) — https://www.law.go.kr/LSW/lsSideInfoP.do?lsiSeq=287261&joNo=0037&joBrNo=00&docCls=jo&urlMode=lsScJoRltInfoR

Yes. Large buildings such as knowledge industry centers can also have a defect investigation. Because heavy equipment is often brought into these buildings, the focus is on the flatness and cracking of floor concrete and on whether industrial piping has been changed to a material different from the design. A knowledge industry center is not multi-family housing, so if it was sold as separately owned units, the warranty provisions of Korea's Act on Ownership and Management of Condominium Buildings apply, and the scope of common areas and exclusive areas is clarified before the survey. Sources: Korea's Act on Ownership and Management of Condominium Buildings, Article 9 (Warranty liability) — https://www.law.go.kr/LSW/lsSideInfoP.do?lsiSeq=249285&joNo=0009&joBrNo=00&docCls=jo&urlMode=lsScJoRltInfoR Korea's Act on Ownership and Management of Condominium Buildings, Article 9-2 (Duration of warranty liability) — https://www.law.go.kr/LSW/lsSideInfoP.do?lsiSeq=249285&joNo=0009&joBrNo=02&docCls=jo&urlMode=lsScJoRltInfoR

When choosing a company, first check whether it actually has the technical staff who will survey the site and take responsibility for the report. Whether it operates its own thermal imaging cameras and rebar detection equipment, and whether engineers in the building, structural and mechanical fields take part together, also determine survey quality. If the defect investigation is commissioned in consultation with the developer under the Multi-Family Housing Management Act, the performing body must be one of the statutory institutions, such as the Korea Authority of Land & Infrastructure Safety (KALIS), a registered engineering business, a Professional Engineer (Korea's national qualification), an architect, or a registered institution specializing in safety examinations in the building field. Getting the survey scope, deliverables and additional cost conditions in writing before the contract makes comparison easier. Sources: Korea's Multi-Family Housing Management Act, Article 48 (Defect investigation and appraisal) — https://www.law.go.kr/LSW/lsSideInfoP.do?lsiSeq=284009&joNo=0048&joBrNo=00&docCls=jo&urlMode=lsScJoRltInfoR Enforcement Decree of Korea's Multi-Family Housing Management Act, Article 62 (Defect investigation and appraisal) — https://www.law.go.kr/LSW/lsSideInfoP.do?lsiSeq=287261&joNo=0062&joBrNo=00&docCls=jo&urlMode=lsScJoRltInfoR

Omitted construction means that all or part of a work item in the design documents was not built at all, while changed construction means it was built but its size, performance or material falls short of the design documents, or a lower-grade material was substituted. A missing automatic closing device on a fire door is omitted construction; insulation below the drawing specification or reduced pipe sizes are changed construction. Korea's defect determination criteria for multi-family housing treat both as defects when they impair safety, function or appearance, and the defect investigation compares the drawings with the site to record which category applies. Sources: Korea's Standards for the Investigation of Defects in Multi-Family Housing, Calculation of Repair Costs and Defect Determination (MOLIT notice) — https://www.law.go.kr/LSW/admRulLsInfoP.do?admRulSeq=2100000282400

A defect appraiser is an expert designated by the court who, according to the appraisal matters set by the court, investigates whether the defects claimed by the plaintiff actually exist and their causes, and calculates the cost of repair. The results are submitted as an appraisal report or explained orally in court, and the court gives both parties an opportunity to comment on the appraisal results. Unlike a defect investigation commissioned directly by a party, the selection of the appraiser and the appraisal procedure are decided by the court, and the court decides how to weigh the appraisal results together with the other evidence. Sources: Korea's Civil Procedure Act, Article 335 (Designation of appraisers) — https://www.law.go.kr/LSW/lsSideInfoP.do?lsiSeq=252393&joNo=0335&joBrNo=00&docCls=jo&urlMode=lsScJoRltInfoR Korea's Civil Procedure Act, Article 339 (Method of appraisal statements) — https://www.law.go.kr/LSW/lsSideInfoP.do?lsiSeq=252393&joNo=0339&joBrNo=00&docCls=jo&urlMode=lsScJoRltInfoR Korea's Civil Procedure Act, Article 202 (Principle of free evaluation of evidence) — https://www.law.go.kr/LSW/lsSideInfoP.do?lsiSeq=252393&joNo=0202&joBrNo=00&docCls=jo&urlMode=lsScJoRltInfoR

Everything residents use in daily life is checked, from finishes to windows and equipment operation. This includes wallpaper and tile finishes, the level of furniture doors, window airtightness and condensation, even floor heating, leaks under kitchen and bathroom cabinets, balcony drain slopes, and the operation of the home network and ventilation units. Under the defect determination criteria, windows installed in exterior walls and piping up to the unit meter are part of the exclusive area, while structural parts such as load-bearing walls and columns are common areas. Since residents claim repairs for the exclusive area and the council of occupants' representatives and others for common areas, the apartment defect investigation results are organized separately for the two. Sources: Korea's Standards for the Investigation of Defects in Multi-Family Housing, Calculation of Repair Costs and Defect Determination (MOLIT notice) — https://www.law.go.kr/LSW/admRulLsInfoP.do?admRulSeq=2100000282400 Enforcement Decree of Korea's Multi-Family Housing Management Act, Article 38 (Defect repair procedure) — https://www.law.go.kr/LSW/lsSideInfoP.do?lsiSeq=287261&joNo=0038&joBrNo=00&docCls=jo&urlMode=lsScJoRltInfoR

Yes. For a defect investigation under Article 48 of the Multi-Family Housing Management Act, the cost can be paid from the long-term repair reserve fund with the written consent of a majority of residents. In principle the reserve fund is used according to the long-term repair plan, but the Act allows it, with written consent, to be used for the costs of mediation and similar procedures of the Defect Dispute Mediation Committee, for defect investigation and appraisal costs under Article 48, and for the cost of claiming these costs. Here, residents means owners and the spouses and lineal relatives who represent them, so tenants are not counted toward consent. A defect investigation under Article 48 is a procedure in which the developer commissions a safety examination institution in consultation with the council of occupants' representatives, so for a survey commissioned separately, such as for preparing litigation, first obtain the interpretation of the competent city, county or district office on whether this use is covered. Sources: Korea's Multi-Family Housing Management Act, Article 30 (Accumulation of the long-term repair reserve fund) — https://www.law.go.kr/LSW/lsSideInfoP.do?lsiSeq=284009&joNo=0030&joBrNo=00&docCls=jo&urlMode=lsScJoRltInfoR Korea's Multi-Family Housing Management Act, Article 48 (Defect investigation and appraisal) — https://www.law.go.kr/LSW/lsSideInfoP.do?lsiSeq=284009&joNo=0048&joBrNo=00&docCls=jo&urlMode=lsScJoRltInfoR

The criteria refer to the MOLIT notice on the investigation of defects in multi-family housing, calculation of repair costs and defect determination, which the Defect Review and Dispute Mediation Committee uses for rulings on defects, survey methods and repair cost calculation. The defect investigation applies the same yardstick: for concrete cracks, for example, a crack 0.3 mm or wider or accompanied by leakage is treated as a construction defect, and each item is judged against its own criterion. Crack surveys are in principle a full survey measuring the entire length, with sampling allowed when the area is large or includes high-rise parts, and repair costs are calculated by applying Korea's standard construction estimating system, divided into direct costs, indirect costs and value-added tax. HomeCheck compares the design documents and site measurements according to the survey methods in these criteria and prepares its opinion on defects and repair cost material. Sources: Korea's Standards for the Investigation of Defects in Multi-Family Housing, Calculation of Repair Costs and Defect Determination (MOLIT notice) — https://www.law.go.kr/LSW/admRulLsInfoP.do?admRulSeq=2100000282400 Enforcement Decree of Korea's Multi-Family Housing Management Act, Article 47 (Methods of defect investigation and determination criteria, etc.) — https://www.law.go.kr/LSW/lsSideInfoP.do?lsiSeq=287261&joNo=0047&joBrNo=00&docCls=jo&urlMode=lsScJoRltInfoR

Under the Multi-Family Housing Management Act, a defect investigation and a defect appraisal differ in who commissions them and where the results are submitted. A defect investigation is commissioned to a safety examination institution by the developer, in consultation with the council of occupants' representatives and others, when it objects to a repair claim, and the institution submits the results to both sides within 20 days unless otherwise agreed. A defect appraisal is requested of a safety examination institution by the Defect Dispute Mediation Committee in cases where the investigation results are disputed or the cause of the defect is unclear; the results go to the committee, and an institution that investigated the same case may not perform the appraisal. An appraisal by a court-appointed appraiser in litigation is yet another procedure, and a defect investigation commissioned directly by the council of occupants' representatives is a survey that organizes the defect list and evidence ahead of these procedures. Sources: Korea's Multi-Family Housing Management Act, Article 48 (Defect investigation and appraisal) — https://www.law.go.kr/LSW/lsSideInfoP.do?lsiSeq=284009&joNo=0048&joBrNo=00&docCls=jo&urlMode=lsScJoRltInfoR Enforcement Decree of Korea's Multi-Family Housing Management Act, Article 62 (Defect investigation and appraisal) — https://www.law.go.kr/LSW/lsSideInfoP.do?lsiSeq=287261&joNo=0062&joBrNo=00&docCls=jo&urlMode=lsScJoRltInfoR

The report or survey sheet treats each defect as one item and records in order where and what occurred, why, and how it should be repaired. The location is recorded down to building, unit, room and part, along with whether it is in the exclusive area or a common area, which facility work it belongs to and when its warranty period ends. The condition field includes site photos and measured values such as crack width and length, and based on comparison with the design documents it states whether the item is a construction defect, omitted construction or changed construction, and its cause. Finally, the repair method, quantities and the repair cost calculated by applying Korea's standard construction estimating system are recorded so that the item totals serve as the basis for repair negotiations. Sources: Korea's Standards for the Investigation of Defects in Multi-Family Housing, Calculation of Repair Costs and Defect Determination (MOLIT notice) — https://www.law.go.kr/LSW/admRulLsInfoP.do?admRulSeq=2100000282400

Yes. A detached house or country house built by a construction company can have a defect investigation if the building owner commissions it. For such houses, the standard is the construction contract and the contractor's warranty liability under Korea's Civil Act rather than the warranty periods of the Multi-Family Housing Management Act, and the owner can claim repair of defects, or damages in place of or together with repair. The Civil Act sets the building contractor's warranty liability at 5 years after delivery, or 10 years for buildings made of materials such as stone, brick or metal, and if the work was carried out by a construction business operator, the warranty periods by type of work under Korea's Framework Act on the Construction Industry are also considered. HomeCheck compares the contract drawings with the site and provides a report organizing omitted and changed construction and the causes of defects. Sources: Korea's Civil Act, Article 667 (Contractor's warranty liability) — https://www.law.go.kr/LSW/lsSideInfoP.do?lsiSeq=284415&joNo=0667&joBrNo=00&docCls=jo&urlMode=lsScJoRltInfoR Korea's Civil Act, Article 671 (Contractor's warranty liability: special provisions for land, buildings, etc.) — https://www.law.go.kr/LSW/lsSideInfoP.do?lsiSeq=284415&joNo=0671&joBrNo=00&docCls=jo&urlMode=lsScJoRltInfoR Korea's Framework Act on the Construction Industry, Article 28 (Warranty liability of construction contractors, etc.) — https://www.law.go.kr/LSW/lsSideInfoP.do?lsiSeq=273435&joNo=0028&joBrNo=00&docCls=jo&urlMode=lsScJoRltInfoR

If an apartment complex subject to mandatory management pays the defect investigation fee from management fees or the long-term repair reserve fund, selection of the company must in principle be by competitive electronic bidding under Korea's Guidelines for Selecting Housing Management Operators and Contractors. Before the bid notice, the council resolves the type and method of bidding, the award method such as qualification review or lowest price, and any restrictions on eligibility, and the notice is posted 10 days before the day preceding the bid submission deadline on K-apt (Korea's multi-family housing management information system), the complex website and the notice boards of each building. A negotiated contract is also possible for reasons set out in the guidelines, such as when competitive bidding has failed twice or more, or when the amount excluding value-added tax is KRW 5 million or less and quotes have been obtained from two or more parties; in that case the counterparty and conditions are resolved first. Once the winning bidder is decided, the selection result is disclosed and the contract is signed on the same conditions as the bid. Sources: Korea's Guidelines for Selecting Housing Management Operators and Contractors — https://www.law.go.kr/LSW/admRulLsInfoP.do?admRulSeq=2100000239024 Korea's Multi-Family Housing Management Act, Article 25 (Selection of contractors for the execution of management fees, etc.) — https://www.law.go.kr/LSW/lsSideInfoP.do?lsiSeq=284009&joNo=0025&joBrNo=00&docCls=jo&urlMode=lsScJoRltInfoR