Daebo Construction Fails to Pay 'Promissory Note Discount Fees and Delay Interest' to Subcontractors... 'Correction Order and Fine'

[Sejong=Asia Economy Reporter Joo Sang-don] Daebo Construction has once again been caught by the Fair Trade Commission for failing to pay subcontractors discount fees on promissory notes, substitute payment fees, and delayed interest. Daebo Construction has a history of receiving three warnings and one corrective order over the past three years for non-payment of promissory note discount fees, delayed interest, and violations of the obligation to maintain cash payment ratios.

The Fair Trade Commission announced on the 9th that it has decided to impose a corrective order and a fine of 93 million KRW on Daebo Construction for these unfair practices.

According to the Fair Trade Commission, Daebo Construction paid subcontract payments to 21 subcontractors with promissory notes that exceeded the maturity date by more than 60 days from the date of receipt of the goods or services, but did not pay discount fees amounting to 76.66 million KRW for the exceeded period. Additionally, for three subcontractors, it paid subcontract payments using substitute payment methods exceeding the repayment date by more than 60 days from the date of receipt of the goods or services, but did not pay fees of 8.63 million KRW for the exceeded period, and for 105 subcontractors, it failed to pay delayed interest amounting to 161.85 million KRW.

However, Daebo Construction paid all unpaid promissory note discount fees, substitute payment fees, and delayed interest totaling 247.15 million KRW during the investigation process.

Furthermore, although Daebo Construction received progress payments in cash from the client, it paid subcontract payments amounting to 1,073.452 million KRW to 68 subcontractors using promissory notes or substitute payment methods. This constitutes a violation of the obligation to maintain the cash payment ratio.

A Fair Trade Commission official stated, "This action is a strict measure to establish a fair subcontract transaction order against companies that repeatedly violate the law," and added, "It is expected to enhance the willingness of companies with prior violations to comply with the law."

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