Fair Trade Commission conducts on-site investigation into subcontracting transactions including construction companies' unfair transfer of industrial accident-related costs

[Sejong=Asia Economy Reporter Joo Sang-don] Recently, as social interest in industrial accidents has increased, construction companies' related costs have risen, and the likelihood of passing these costs on to subcontractors has grown, the Fair Trade Commission has decided to conduct on-site investigations regarding this issue.

The Fair Trade Commission announced that starting from the 3rd, it will conduct on-site investigations focusing on unfair cost-shifting practices to subcontractors at 25 construction companies.

Based on the results of a written survey, the Fair Trade Commission selected a total of 25 companies for investigation, including 14 companies with many suspected violations of the Subcontracting Act and 11 companies reported for violations. The Commission plans to investigate whether the primary contractors unfairly shifted various costs to subcontractors through unfair special agreements, including industrial accident costs such as medical expenses, compensation, and settlement payments they should bear themselves; noise and dust-related environmental complaint costs; civil and criminal dispute costs related to various complaints; other unexpected costs; as well as issues related to subcontracting payments.

A Fair Trade Commission official stated, "If violations are detected during this investigation, we plan to take strict measures such as imposing fines promptly to send a strong warning to the market. We will also organize and disclose the types of violations found based on the investigation results to eradicate such practices in the related market. Furthermore, we will actively promote prevention of unfair special agreements in the construction sector by working with related organizations such as the Korea Construction Association and the Korea Specialty Contractors Association."

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