Seoul Subcontracting Corruption Reporting Center Resolves 42.5 Billion Won in Unpaid Payments Over 9 Years

[Asia Economy Reporter Yuri Kim] The Seoul Metropolitan Government's Subcontracting Irregularities Reporting Center has resolved construction site unpaid payments totaling 42.5 billion KRW over the past nine years. This is the result of receiving and processing 2,812 complaints related to construction payments, including wages, materials, and equipment fees.

Since 2015, the Seoul Subcontracting Irregularities Reporting Center has expanded its scope from Seoul city-commissioned projects to include private construction projects, handling complaints related to subcontracting such as low-price subcontracting, non-payment of fees, and wage arrears.

According to Seoul city on the 23rd, the number of complaints received by the center last year was 354, an 11% increase compared to the previous year. The resolved unpaid payments amounted to 3.7 billion KRW. The types of complaints received included 196 cases (55%) related to material and equipment payments and 136 cases (38%) related to wages. The unpaid period was three months or less in 222 cases (63%), and the unpaid amount was 5 million KRW or less in 161 cases (45%), showing high proportions in both categories. The city analyzed that this reflects a well-established reporting culture where construction industry workers actively share information and promptly report unpaid payments to the center when they occur.

The satisfaction rate for using the Seoul Subcontracting Irregularities Reporting Center rose by 21.3 percentage points from the previous year to 75.3%. This result comes from a survey conducted in 2019 of 242 users of the center, covering five categories including the complaint reception process, the kindness of staff, and the results of complaint handling.

The city explained, "Since 2015, by expanding the scope of subcontracting irregularities reporting to private construction projects and operating the nation's first 'Subcontracting Ombudsman' with legal qualifications to provide legal consultation on complaints and disputes," it has "prepared and distributed manuals for each stage of complaint reception and handling, as well as booklets on subcontracting-related laws, thereby improving the speed of complaint processing."

Going forward, Seoul city plans to implement a 'three strikes out system' for companies that habitually delay subcontracting payments, equipment, and material payments three or more times, to establish a transparent and fair subcontracting transaction order at construction sites. The city also announced plans to designate a 'subcontracting payment arrears intensive reporting period' to resolve and prevent unpaid construction payments, wages, materials, and equipment fees for projects commissioned by Seoul city-affiliated organizations. During this intensive reporting period, urgent inspection teams will be formed to conduct special inspections at sites with multiple or repeated complaints.

The Seoul Subcontracting Irregularities Reporting Center can be accessed via phone or through the Seoul city website. Complaints can also be filed by visiting in person or through the 120 Dasan Call Center.

Seung-hyo Ko, Director of Safety Audit at Seoul city, stated, "The Seoul Subcontracting Irregularities Reporting Center will continue to pay close attention to ensure that various subcontracting payments such as wages and construction machinery rental fees are not delayed, and will do its best to improve related systems to eradicate unfair subcontracting practices."

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