Yeongdeungpo-gu, Early Payment of Various Fees Ahead of Lunar New Year

Payment of 1.3 billion KRW including construction fees scheduled by the 10th to 37 companies contracted with the district... Payment period shortened from the usual 19 days to a maximum of 10 days... Efforts to revitalize the local economy for Seollal... Labor costs including wages paid within 1 day... Inspection of payment appropriateness at construction sites

[Asia Economy Reporter Park Jong-il] Yeongdeungpo-gu (District Mayor Chae Hyun-il) announced that it will make early payments of various fees to companies contracted with the district in celebration of the Lunar New Year, a major national holiday.

The purpose is to promote economic stability for businesses and workers by shortening the payment procedures for contracts related to construction, services, and supplies.

Accordingly, the district plans to pay 1.3 billion KRW to 37 companies currently contracted with the district by February 10, before the Lunar New Year. The payment period, which usually takes up to 19 days from the completion date of construction, will be shortened to a maximum of 10 days to complete payments before the holiday.

The ordering department must complete progress and completion inspections within 7 days (up to 14 days) after the company fulfills the contract terms and submit the payment invoice from the company, then complete the payment within 5 days.

To shorten these procedures ahead of the Lunar New Year, the district will complete payments within 3 days instead of the usual 5 days and finish all procedures by February 10.

In particular, labor costs related to wages will be shortened to payment within 1 day. Additionally, companies that meet the requirements for advance payments will be encouraged to apply for advance payment to ensure smooth funding.

From January 29 to February 4, the district also conducted focused inspections on the appropriateness of payments such as workers’ wages and subcontract payments at construction sites.

Along with this, the district promoted direct payment agreements among the ordering party, primary contractors, and subcontractors to ensure subcontract payments are made promptly to subcontractors.

Meanwhile, to prevent illegal subcontract payment practices by primary contractors, the district is implementing the ‘Direct Payment System for Subcontract Payments,’ where the ordering department pays subcontractors directly.

Chae Hyun-il, Mayor of Yeongdeungpo-gu, stated, “We decided to make early payments for construction and other fees so that small and medium-sized enterprises struggling due to the prolonged COVID-19 pandemic can have a warm holiday without worrying about financial difficulties. We will continue to prepare various measures to promote coexistence between businesses and workers and revitalize the local economy.”

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