Public Procurement Service to Advance Payment of 44 Billion KRW for Construction Fees Before Chuseok

[Asia Economy (Daejeon) Reporter Jeong Il-woong] The Public Procurement Service (PPS) will make an early payment of 44 billion won in construction fees before the Chuseok holiday begins.

On the 17th, the PPS announced that it will implement livelihood support measures, including early payment of construction fees, as part of efforts to alleviate the management difficulties of small and micro enterprises.

The early payment of construction fees is carried out to ensure that subcontract payments, material and equipment fees, and worker wages are not delayed at 25 construction sites nationwide managed by the PPS.

In addition, public institutions using the Subcontract Keeper system will be encouraged to pay subcontract fees before Chuseok whenever possible, and through prompt procurement contracts, up to 80% of the contract amount can be prepaid by utilizing advance payments and network loans.

The PPS will also promote adjustments to delivery deadlines to ease the management burden on procurement companies. For about 4,800 contracts and deliveries (worth approximately 230 billion won) scheduled for delivery immediately after the holiday from the 5th to the 7th of next month, the PPS plans to extend the delivery deadlines to after the 13th of next month in consultation with the demand institutions.

Jung Moo-kyung, Administrator of the PPS, said, “We will swiftly implement these livelihood support measures so that procurement companies facing difficulties can immediately feel the policy effects on the ground. Above all, in the current situation where the COVID-19 crisis continues, we will continue to discover and implement support policies that provide practical help to procurement companies.”

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