Yeongdeungpo-gu to Advance Payment of 1.8 Billion Won for Construction Fees Before Lunar New Year Holiday

Advance Payment of 1.8 Billion KRW to 32 Contracted Companies... Standard 19-Day Processing Time Reduced to 10 Days... Payment Completed by the 23rd

[Asia Economy Reporter Jong-il Park] Yeongdeungpo-gu (District Mayor Chae Hyun-il) will expedite the payment of various funds totaling 1.8 billion KRW to construction contractors and other companies contracted with the district before the Lunar New Year holiday.

In celebration of the major national holiday, the payment procedures for construction, service, and goods contracts will be shortened to promote economic stability for businesses and workers.

The district will pay 1.8 billion KRW in construction fees to 32 contracted companies by the 23rd. Normally, payment takes up to 19 days from the completion of construction, but this will be shortened to a maximum of 10 days to complete payments before the holiday.

The ordering department must complete progress and final inspections within 14 days after the contractor fulfills the contract terms and performs the work as agreed, and payments must be completed within 5 days after receiving the payment request from the contractor.

However, ahead of the Lunar New Year, the district will shorten the progress and final inspections from 14 days to within 7 days, and payments that usually take up to 5 days will be completed within 3 days, finishing all procedures by the 23rd.

In particular, labor costs related to wages will be paid within 1 day.

Additionally, companies that meet the requirements for advance payments will be encouraged to apply for such payments to ensure smooth funding.

From the 15th to the 23rd, there will also be focused inspections at construction sites to verify whether workers’ wages and subcontractor payments are being properly made.

The district has been prepaying construction fees to contracted companies every Lunar New Year and Chuseok holiday. Last year, it paid 2 billion KRW and 2.5 billion KRW respectively during these holidays to help alleviate financial difficulties.

Furthermore, for subcontract payments, the district encourages direct payment agreements among the ordering party, primary contractor, and subcontractors to ensure prompt delivery of funds to subcontractors.

To prevent illegal subcontract payments by primary contractors, the district implements a ‘Direct Payment System for Subcontract Fees,’ where the ordering department pays subcontractors directly.

Chae Hyun-il, Mayor of Yeongdeungpo-gu, stated, “In these difficult economic times, we decided to pay construction fees in advance so that small and medium-sized enterprises can enjoy a warm holiday without financial worries. Yeongdeungpo-gu will continue to prepare various measures to help businesses and workers have a prosperous holiday.” For inquiries, contact the Finance Department (☎2670-3197).

This content was produced with the assistance of AI translation services.