Apartment defects recognized: 899 defects by DL Construction and 678 by GS E&C

An apartment complex seen from Seoul Sky at Lotte World Tower in Songpa-gu, Seoul. Kang Yoon-joong

Companies responsible for the most defects in apartments recognized by authorities in the last five years included many companies that ranked in the top ten in terms of their construction ability, such as DL Construction and GS Engineering & Construction (GS E&C).

According to the status of apartment construction defects listed according to construction companies in 2019-2023, which Democratic Party of Korea legislator Huh Young of the parliamentary Land, Infrastructure and Transport Committee received from the land ministry on September 4, authorities recognized the most defects, 899, in apartments built by DL Construction. It was followed by GS E&C with 678 defects. GS E&C was the company that constructed the apartment in Geomdan, Incheon, where an underground parking lot recently collapsed. Authorities recognized 626 defects in apartments by Jungheung Construction, 444 by HDC Hyundai Development Company, 403 by Doosan E&C, 374 by Daewoo E&C, 344 by Lotte E&C, and 283 by DL E&C, which followed the top two.

When there is a disagreement between the company and the apartment occupant on what may or may not be recognized as a defect, the problems are examined and a judgment made by a defect dispute mediation committee organized by the land ministry. If the committee concludes that there is a defect, the company must immediately conduct repairs.

Among the top fifteen companies that were responsible for the largest number of defects, there were many large construction companies that were ranked in the top ten in an evaluation of their construction ability. Hyundai E&C, which ranked second in construction capability, was responsible for the thirteenth largest number of defects, 214. Daewoo E&C (3rd), GS E&C (5th), DL E&C (6th), and Lotte E&C (8th) are also leading companies in South Korea’s construction industry.

GS E&C was responsible for many defects, and authorities received requests for an assessment of 3,141 defects, the most among the top fifteen companies. GS was followed by Jungheung Construction (2,167) and HDC Hyundai Development Company (1,955).

Lawmaker Huh Young said, “The figures on recognized defects prove that the construction ability assessment ranking, which is released every year, has nothing to do with the quality of construction. So we need to swiftly improve the current assessment system.”