Land Ministry to Crack Down on Illegal Subcontracting and Payment Arrears at 75 Private Construction Sites in Gyeongsang Region

[Financial News] The government will launch an intensive crackdown on illegal subcontracting and unpaid construction equipment rental fees at 75 private construction sites in the Gyeongsang region. Sites where reports have been filed or payment arrears have occurred will be included in the inspections, linking the reporting reward program with on-site enforcement.
According to the Ministry of Land, Infrastructure and Transport on the 18th, the Joint Support Team for Resolving Payment Arrears at Private Construction Sites, formed with the Korea Construction Equipment Association and others, will conduct intensive inspections of private construction sites in the Gyeongsang region from the 19th through November 13.
The measure is part of the Ministry of Land, Infrastructure and Transport’s “Intensive Crackdown on Illegal Subcontracting and Voluntary Reporting Period,” which has been in effect since the 12th and will run through the end of the year. The scope of the crackdown has been expanded from public construction sites to private ones.
The Ministry of Land, Infrastructure and Transport previously selected 275 public construction sites suspected of or reported for illegal subcontracting, in coordination with 10 major public institutions. For the crackdown on private sites in the Gyeongsang region, it will deploy 15 personnel, including staff from ministry headquarters and five Regional Offices of Construction Management, and conduct joint inspections with the Korea Construction Equipment Association.
The intensive inspections in the Seoul metropolitan area last May uncovered 29 cases of illegal subcontracting and 60 other violations of the Framework Act on the Construction Industry. For 11 cases of unpaid construction equipment rental fees, the authorities took steps to ensure that a total of 125.8 million won was paid.
The sites targeted in this crackdown include those for which reports have been filed with Regional Offices of Construction Management and sites where payment arrears have occurred. The ministry plans to review the reports and actual construction practices to determine whether the law has been violated.
It will also distribute posters explaining the reporting reward program, featuring reporting QR codes for the Fair Construction Support Centers at the five Regional Offices of Construction Management and the main hotline, 1577-8221, to make it easier for construction workers to report illegal subcontracting.
First Vice Minister of Land, Infrastructure and Transport Kim I-tak said, “Having seen the results of detecting illegal subcontracting and resolving payment arrears during the intensive inspections in the Seoul metropolitan area last May, this time we will concentrate enforcement personnel from the five Regional Offices of Construction Management in the Gyeongsang region and work with the Korea Construction Equipment Association to closely examine illegal subcontracting and payment arrears at private construction sites.”
[email protected] Choi Ga-young Reporter