Jungbu Power, Pays Service Wages via 'Sangsaeng Payment'... "First Public Institution"

Direct Payment to Service Wage Workers through Win-Win Payment System... "Eradication of Wage Arrears"

Exterior view of Korea Midland Power headquarters. (Photo by Korea Midland Power)

[Asia Economy Reporter Moon Chaeseok] Korea Midland Power announced on the 25th that it became the first public institution to directly pay salaries to cleaning service workers this month using the 'Win-Win Payment System.'

Through labor cost payments utilizing the Win-Win Payment System, public institutions and large corporations directly pay labor costs to service workers via labor cost dedicated accounts. This prevents wage arrears.

Since introducing the Win-Win Payment System in November 2016, Midland Power has paid 270.7 billion KRW (170 companies) in 2019 and 212.8 billion KRW (243 companies) as of last month through the system.

Primary contractors can receive corporate tax reductions on the payment amounts made to secondary contractors through the Win-Win Payment System.

Secondary contractors are guaranteed cash payments on the payment date and can also liquidate payment amounts into cash before the payment date at low financial costs similar to those of Midland Power.

A Midland Power official stated, "With the introduction of direct labor cost payments for service fees, we expect to eradicate wage arrears and improve the treatment of service workers."

Midland Power plans to expand direct labor cost payments to all service and routine maintenance sectors, including facilities, security, and firefighting, starting next month.

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