Lakeside Construction, mobilizing dozens of camouflage affiliates with’bee bidding’
Occupies 44 of LH pre-sale public housing sites… Entered the top 10 construction companies
Photo = Yonhap News
While suspicion of illegal land speculation by employees of the Korea Land and Housing Corporation (LH) is spreading, some construction companies have also made so-called “mistakes” for public housing created by LH, and it was found that they made enormous profits.
According to the’LH 2008-2018 apartment site bidding and successful bidding status’ received from LH by Rep. Song Eon-seok on the 21st, some construction companies such as Lakeside Construction mobilized dozens of paper companies As many as 10% of public housing sites were secured.
Hoban Construction accounted for 44 (9.3%) of public housing units sold by LH during this period. In addition, five mid-sized construction companies, including Lakeside Construction, were found to occupy about 30% of the public housing land supplied by LH.
Rep. Song argued that “Hoban Construction has participated in a lot of paper companies in the lottery.” In fact, during that period, Hoban E&C established about 40 affiliates, of which more than 20 were reported to have fewer than 10 employees.
The apartment site in public housing is called’super lotto’ in the construction industry because it can earn tens of billions of dollars per lot. Rep. Song pointed out that the government and LH assisted the Paper Company to win the bid.
Considering the fact that until recently, the bid system for apartment land for public housing was a’simple lottery system’, the construction industry official explained that the more camouflaged affiliates were mobilized, the higher the probability of winning. Hoban Construction has achieved a high operating margin of around 20% every year based on the public housing land secured through this trick.
Thanks to this, Hoban Construction’s construction industry ranking (construction capability evaluation ranking) jumped from 62nd in 2010 to 10th in 2019, and entered the ranks of the top 10 construction companies. In 2018, Hoban Construction’s sales amounted to 1,174.4 billion won and its operating profit was 2792 billion won. The operating margin reached a whopping 24%. The operating margin of other large construction companies was around 5%.
Seongsu Bae, reporter Hankyung.com [email protected]
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