Seoul Metropolitan Government to Conduct Special Inspection of Unpaid Construction Payments and Wages Before Chuseok

[Financial News] Seoul Metropolitan Government announced on the 2nd that it will conduct a special inspection ahead of the Chuseok holiday to prevent the nonpayment or delayed payment of construction costs, workers’ wages, and material and equipment rental fees. The inspection will be carried out from the 7th to the 11th by the Special Inspection Team for Preventing Payment Arrears, which will visit 10 vulnerable sites among Seoul Metropolitan Government-commissioned construction projects. The sites were selected because related complaints had been filed or because they involved numerous subcontractors.
The inspection team consists of 16 members: 10 honorary subcontracting ombudsmen who are lawyers, labor attorneys, or professional engineers, along with six Seoul Metropolitan Government employees. It will focus on verifying the execution and fulfillment of construction-related payments, as well as the validity of employment contracts and construction equipment rental agreements. If disputes arise, the honorary subcontracting ombudsmen will encourage amicable resolutions through legal consultations or mediation.
The inspection will also examine the issuance of construction equipment rental payment guarantees at each site under Article 68-3 of the Framework Act on the Construction Industry; the use of the “Subcontracting Guardian” system under Article 34, Paragraph 9 of the same act; and the operation of the electronic workforce management system for construction workers under Article 20-5 of the Special Conditions for Seoul Construction Contracts and Article 14, Paragraph 3 of the Act on the Employment Improvement, etc. of Construction Workers. Inspectors will also listen to feedback from the sites.
Following the intensive inspection, Seoul Metropolitan Government plans to take measures in accordance with relevant regulations, including corrective orders and business suspensions, depending on the severity of any violations.
In addition, Seoul Metropolitan Government will operate a dedicated reporting period for unpaid subcontracting payments from the 7th through the 23rd of this month. Reports can be filed with the Seoul Metropolitan Government Subcontracting Irregularities Reporting Center.
Moon Hyuk, chair of the Seoul Metropolitan Government Audit Committee, said, “We will continue to pay close attention to ensure that various payments, including subcontracting payments, labor wages, and construction equipment rental fees, are not left unpaid on Seoul construction projects. We will also work to improve the system to protect the rights and interests of subcontractors and construction workers, who are socially vulnerable.”
[email protected] Seong Cho-rong Reporter