The Korea Herald


Over 10,000 builders blacklisted: ministry

By Korea Herald

Published : Dec. 29, 2011 - 16:35

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Nearly three out of 10 builders were found to be disqualified for corporate registration in a government survey aimed at restructuring the overcrowded construction sector.

Out of some 39,553 builders inspected in the three months through Dec. 16, 10,964 firms including paper companies failed to meet the requirements for registration, could not be located or refused the state survey, the Land Ministry said.

The blacklisted companies will undergo hearings by local governments, and those found to have violated registration rules will be slapped with administrative penalties such as prohibition from doing business for six months.

Among the 7,182 general construction companies, 18 percent or 1,291 were identified as ineligible for registration. Of the 32,371 specialized builders, 29.9 percent or 9,673 did not meet the legal requirements.

About seven out of 10 blacklisted companies did not file data demanded by the ministry. Some 13.6 percent failed to meet the technological standards and 9.7 percent lacked the capital for registration. About 3.8 percent did not have the required facilities or equipment and 3.6 percent did not have enough funds to guarantee projects.

By Kim So-hyun (