President Lee Jae-myung on Thursday criticized excessive management fee increases at multi-unit buildings and commercial properties as "close to criminal behavior."
At a Cabinet meeting held at Cheong Wa Dae, Lee cited abnormal practices while emphasizing the need to uncover hidden irregularities.
"Buildings and commercial properties collect management fees. I hear some are raising these fees because rent increases are restricted," Lee said.
"Management fees are meant to divide maintenance costs, but they add commissions and overcharge tenants," the president said. "When water bills are only 1 million won, they charge 2 million won by collecting 200,000 won each from 10 stakeholders—paying the actual 1 million won bill and pocketing the rest. This happens quite often."
Lee added: "They don't even show the fee breakdowns. They hide them. This is unacceptable. Though concealed, it could be deception, fraud, or embezzlement—very bad behavior. But people have long thought 'management fees can be charged higher.'"
"Some may say the president is discussing trivial matters, but hundreds of people nationwide have stakes in this issue. This is corruption," Lee said, ordering officials to "identify and address these problems, and reform the system if necessary."