Preventing Subcontracting Fund Shortages During Chuseok... Operation of Reporting Center

Fair Trade Commission to Operate Center from 10th to September 29... "Preventing Non-Payment of Construction Fees"

Fair Trade Commission. / Photo by Hyunmin Kim kimhyun81@

[Asia Economy Reporter Moon Chaeseok] The Fair Trade Commission announced on the 10th that it will operate a reporting center to prevent small and medium-sized enterprises (SMEs) from falling into financial difficulties due to non-payment of subcontracting fees during the Chuseok holiday.

The Fair Trade Commission stated that it will operate an "Unfair Subcontracting Reporting Center" at 10 locations across 5 regions nationwide for 51 days from today until the 29th of next month to prevent non-payment of construction fees and other issues.

The commission will also establish centers at its headquarters, local offices, and the Subcontracting Dispute Mediation Council to enhance the convenience of reporting for small subcontracting companies.

During the holiday period, the demand for funds surges sharply, and companies that do not receive subcontracting payments may face difficulties in managing their finances.

Accordingly, the Fair Trade Commission plans to actively encourage voluntary correction by the original contractors or agreements between parties to enable early payment of subcontracting fees before the Chuseok holiday.

In particular, cases that require urgent handling, such as subcontractors facing bankruptcy risks, will be prioritized.

The commission plans to request major economic organizations, including the Korea Chamber of Commerce and Industry, to actively urge their member companies to pay subcontracting fees on time before the Chuseok holiday.

Additionally, through local offices, the commission will demand that major companies in their jurisdictions pay subcontracting fees promptly.

Reports can be submitted via mail, fax, or online. Telephone consultations are also available.

Jang Hyerim, head of the Manufacturing Subcontracting Improvement Division at the Fair Trade Commission, expressed, "By operating the center before the Chuseok holiday, we expect to contribute to resolving financial difficulties and stabilizing management for SMEs, and to create an opportunity to spread a culture of preventing unfair subcontracting."

Last Chuseok, the Fair Trade Commission operated the center for 52 days and paid out 29.5 billion KRW (280 cases). During this year's Lunar New Year, the center operated for 53 days and paid 31.1 billion KRW (359 cases).

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