Haenam-gun, Special Investigation on Construction Industry Paper Companies

Investigation of Eligibility Requirements for Successful Bidders Over 20 Million Won

Haenam-gun Office Building Exterior (Photo by Haenam-gun)

[Asia Economy Honam Reporting Headquarters Reporter Kim Hyun] Haenam-gun, Jeollanam-do announced on the 16th that it will conduct a special inspection on so-called paper companies, which are established solely for the purpose of winning contracts and cause problems such as poor construction.

This inspection is a measure to prevent cases where companies from outside the jurisdiction move into the area around the time of construction project bidding and win bids only to engage in illegal subcontracting. A special investigation will be conducted for bidders expected to win contracts worth more than 20 million won.

The inspection items include failure to meet technician qualification requirements and shared office use. In the case of technician qualification requirements, actual work status and payroll expenditure statements will be closely examined to identify illegal activities such as lending national technical certificates.

In particular, if someone borrows another person's national technical certificate, strong administrative measures such as suspension of construction business and cancellation of registration will be implemented as punishment under the National Technical Qualifications Act.

Additionally, to eradicate paper companies that deprive sound construction companies of contract opportunities, the county plans to continuously crack down by receiving public reports from residents on illegal activities related to specialized construction businesses.

County Governor Myeong Hyun-gwan stated, "Paper companies hinder the activities of sound construction companies, leading to the contraction of the local economy and damage to residents due to poor construction," and added, "We will conduct thorough inspections to prevent paper companies from gaining a foothold in Haenam."

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