Home Main Activites Secretariat of the Apartments Defect Dispute Mediation Committee

Secretariat of the Apartments Defect Dispute Mediation Committee

Purposes of the organization

Designed to contribute to the stable housing of the people and the development of residential building industries by extending the durability of apartment buildings and minimizing the losses of business entities through the speedy and fair settlement of disputes between occupants and business entities caused by defects in their structural resistance or various facilities attributable to the business entities (contractors or developers) in connection with the housing construction work.

Organization

  • Ministry concerned : Ministry of Land, Infrastructure and Transport
  • Nature of entity : Administrative committee (independent executive or legislative body)
  • Date founded : Mar. 22, 2009 (committee)
  • Secretariat : The Committee’s secretariat was organized at KISTEC (Oct. 6, 2010), and its duties are performed according to the Chair’s command.

< Apartments Defect Dispute Mediation Committee, MOLIT ( www.adc.go.kr ) >

Chart of Defect Review Procedure

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  1. Receipt of case
    When formal requirements are not satisfied
    Order to rectify defects; request returned(when order is not followed)
  2. Request to claimee for answer
    Reply submitted within 10 days
    Fine of less than 5 million won(when the reply is not submitted)
  3. Opinions collected (as required)
    When there are stakeholders, defect diagnosing agencies, etc.
  4. Fact investigation
    Site investigation, testimony by reference witnesses
  5. Defect appraisal (as required)
    • When appraisal performed by expert agencies is required
    • Cost sharing is determined based on agreement between parties; determined by the Committee if not agreed upon between parties
  6. Defect judgment (resolution)
  7. Issuance of defect judgment letter
    Defect repaired The business entity repairs defects or submits plans for defect repair within 15 days
    When defect is not repaired, 10 million won fine is imposed

Chart of Dispute Mediation Procedure

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  1. Case received
    When formal requirements are not satisfied
    Order to rectify defects; request returned(when order is not followed)
  2. Request to claimee for answer
    • Reply submitted within 10 days
    • The business entity shall obligatorily participate in meditation.
    • Fine of less than 5 million won
      • when the reply is not submitted
      • when the business entity has not participated in meditation
  3. Opinions collected (as required)
    When there are stakeholders, defect diagnosing agencies, etc.
  4. Agreement recommended (as required)
    Parties attend and make statements, or amicable agreement is recommended (when the accountable parties are clear)
  5. Facts investigated (as required)
    • Site investigation
    • testimony by reference witnesses
  6. Formal or official mediation
    • Parties attend and make statements, or amicable agreement is recommended
    • Mediated considering the outcome of fact investigation
    Mediation constituted (scheduled)(when agreement is planned)
  7. Defect appraisal (as required)
    • When appraisal by expert agencies is required
    • Cost sharing is determined based on an agreement between the parties; Determined by the Committee if not agreed upon between the parties
  8. Ex officio mediation
    • Case wherein agreement recommendation is rejected
    • Failure to attend on mediation hearing date without justification
    • Failure to submit reply without justification
    • When other ex officio mediation is required
    Cases under ④ and ⑥: Mediation award under ⑪ is issued
  9. Presentation of mediation plan
    ⑩Completion of mediation (accepted by parties) (*Reply shall be done within 15 days if accepted or not.)
    ⑪ Delivery of mediation award(This has an effect identical to judicial settlement) (*Enforce enforcement in case of nonperformance.)
    Mediation failure(rejected by parties)
    Defect review may be requested when the business entity denies the existence of defects
    Civil litigation is also available

※ Defect review period: Area dedicated to each unit: 60 days* (extendable by 30 days) Common use area: 90 days (extendable by 30 days) *Defect correction or appraisal period excluded