Suwon City 'Detects' 12 Construction Paper Companies

Suwon City Hall

[Asia Economy (Suwon) = Reporter Lee Young-gyu] Suwon City in Gyeonggi Province has uncovered 12 paper companies in the construction sector.

On the 6th, Suwon City announced that it conducted a crackdown on 61 specialized construction companies participating in bids for construction projects worth over 50 million won within the jurisdiction during the first quarter (January to March) of this year, identifying 12 disqualified companies as paper companies.

A paper company is a company that exists only on paper, established solely for the purpose of winning construction contracts.

They lack the actual capability to carry out construction work and gain unfair profits through illegal subcontracting. Paper companies are cited as causes of wage arrears for workers and poor-quality construction.

The city will proceed with administrative measures such as up to six months of business suspension for companies caught for "failure to meet registration standards," and if serious violations such as registration certificate lending are additionally discovered, administrative actions equivalent to registration cancellation will be imposed.

To eradicate paper companies in the construction industry, the city expanded the crackdown target from the second half of last year to include companies participating in bids for construction projects worth over 50 million won. Previously, the crackdown targeted companies bidding for projects between 100 million and less than 1 billion won.

A city official emphasized, "As crackdowns have intensified, the tactics of paper companies have become increasingly sophisticated. We will share information with other local governments and diversify investigation methods through benchmarking to prevent paper companies from gaining a foothold."

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