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Lotte E&C POSCO E&C Dishonored Due to Their Shoddy Construction Works
Builders Receiving Penalties
Lotte E&C POSCO E&C Dishonored Due to Their Shoddy Construction Works
  • By lsh
  • November 21, 2017, 03:00
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Lotte Engineering and Construction (E&C) received the largest number of demerit points over the past three years.
Lotte Engineering and Construction (E&C) received the largest number of demerit points over the past three years.

 

The construction company that received the largest number of demerit points over the past three years due to shoddy construction work was Lotte Engineering and Construction (E&C). Although POSCO Engineering and Construction (E&C) received lower penalty points than Lotte E&C but recorded the most demerit mark cases. 

On November 13, Minjoo Party lawmaker Lee Won-wook who belongs to the National Land Transportation Committee of the National Assembly, disclosed the top 10 construction companies that received the largest number of demerit points for shoddy construction according to the Construction Technology Promotion Act from 2015 to the first half of this year. 

Lotte E&C, which received 26.77 points in 23 cases, ranked first, followed by Kyeryong Construction Industrial (18 cases, 24.96 points), POSCO E&C (26 cases, 21.01 points) and Hyundai E&C (19 cases, 16.08 cases). 

POSCO E&C chalked up the highest number of penalty point cases, 26, followed by Lotte E&C (23), Hyundai E&C (19) and Kyeryong Construction Industrial (18). 

The current Penalty Point System based on the current Construction Technology Promotion Act evaluates 19 items including defects in drainage condition, cracks on concrete surfaces, poor drainage and leakage due to defective waterproofing, and gives demerit marks from one to three points. 

On the other hand, Lotte E&C’s Housing Business Headquarters was searched for evidence over an allegation that the company offered a bribe in the process of landing a reconstruction project on October 23. 17 days later, on November 9, the main building of Lotte E&C was raided on the same charge. This process has been arousing controversy. 

The Korean construction industry is concerned that such negative factors may hinder the expansion of overseas business by Ha Seok-joo who took office as president of Lotte E&C in February.