Hanwha Records Highest Number of Recent Construction Defect Claims, Report Shows | Be Korea-savvy

Hanwha Records Highest Number of Recent Construction Defect Claims, Report Shows


Hanwha Corporation recorded the highest number of construction defects for apartment and officetel buildings over the past six months. (Image courtesy of Yonhap)

Hanwha Corporation recorded the highest number of construction defects for apartment and officetel buildings over the past six months. (Image courtesy of Yonhap)

SEOUL, March 25 (Korea Bizwire)The South Korean Ministry of Land, Infrastructure and Transport revealed on March 24 that Hanwha Corporation recorded the highest number of construction defects for apartment and officetel buildings over the past six months.

According to the ministry’s quarterly disclosure of construction defect data, Hanwha received 97 defect determinations for 1,091 housing units between September 2024 and February 2025, resulting in an 8.9% defect ratio.

A Hanwha representative explained that the high number stemmed from multiple complaints about playground material changes in common areas, rather than internal unit defects. “These cases came from a complex occupied several years ago. Though we completed the remedial work, multiple complaints were filed, inflating the number of determinations,” the representative said.

Hyundai Construction and Daewoo Shipbuilding & Marine Engineering Construction followed with 81 and 80 defect determinations respectively, showing defect ratios of 0.8% and 5%. Hankyungki Construction (79 cases) and Sambu Construction (71 cases), the latter currently under corporate rehabilitation procedures, rounded out the top five.

Looking at a broader five-year period from March 2020 to February 2025, GS Construction led with 1,458 defect determinations and a 4% defect ratio. A GS Construction official noted that most defects were concentrated in two complexes and involved window condensation issues, which have since been remedied.

The ministry also disclosed defect ratios to address concerns that larger builders naturally accumulate more defect cases due to higher construction volumes. Among smaller companies, Samdo Construction showed the highest six-month defect ratio at 800%, with 64 defects across just eight units.

“The public disclosure of defect rankings has proven effective, as major construction companies have become more responsive to defect repairs, significantly reducing dispute cases,” said Kim Young-ah, director of the ministry’s housing supply division. “We will continue to transparently disclose defect-related data to enhance public awareness and encourage construction companies to improve quality.”

 M. H. Lee (mhlee@koreabizwire.com) 

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