Gyeonggi-do to Directly Supervise 'Kkamkkami Management Fees' in Multi-Unit Buildings Starting March...Nation's First

Gyeonggi Province will become the first in the nation to directly supervise collective buildings such as officetels, which have been criticized for "opaque management fees," starting this year.

Collective buildings are structures divided into multiple separate ownership units, and since they are operated through the private autonomy of residents, many disputes arise regarding the use of management fees and accounting handled by the management entity, such as the manager (representative of the separate owners).

To resolve these issues, an amendment to the Collective Building Act allowing local government heads to supervise the affairs of collective building managers has been in effect since September 2023. However, as the system is still in the establishment phase, no supervision has been conducted by any metropolitan or basic local governments nationwide.

Gyeonggi Province enacted the Gyeonggi Province Collective Building Management Supervision Ordinance in October 2023 and began full-scale supervision last year, but no actual supervision took place due to a lack of applications from residents. Therefore, starting this year, the province will directly select collective buildings with disputes or complaints for supervision, regardless of applications.

Gyeonggi Provincial Government

To conduct fair and professional supervision, Gyeonggi Province plans to form and operate a supervisory team composed of private experts such as lawyers, accountants, and housing managers. For efficient supervision, roles will be divided between Gyeonggi Province and city/county governments according to the size of the collective buildings.

The main supervision areas include the collection, accumulation, and use of management fees and repair reserves; procedures for appointing and dismissing managers; preparation and storage of accounting books; and whether accounting audits are conducted.

In particular, this supervision will include the accounting audit supervision duties of collective building managers to closely examine the appropriateness of management fee usage and clarify the managers’ responsibilities, thereby enhancing residents’ trust.

Park Jong-geun, Director of the Architecture Policy Division of Gyeonggi Province, said, "Systematic and transparent management of collective buildings is essential to ensure stable housing and business activities for residents. We will thoroughly prepare to ensure that accounting audit supervision achieves practical results and promote this as a model case of collective building management."

This content was produced with the assistance of AI translation services.