"Real-Time Confirmation of Construction Payment Status"... Gyeonggi-do Strengthens 'Arrears Eradication' Measures

Enhancement of the 'Daegum Payment Confirmation System' Function

[Asia Economy Reporter La Young-cheol] Gyeonggi Province is strengthening measures to eradicate payment delays by introducing a real-time tracking feature for construction payment flows into the 'Payment Confirmation System,' which is operated to prevent delayed payments of construction fees and labor costs.

According to Gyeonggi Province on the 31st, the system applies to construction projects ordered by the province, its affiliated organizations, and six cities/counties (Suwon, Seongnam, Gwangmyeong, Siheung, Gwangju, Yangpyeong) with contract amounts exceeding 30 million KRW and construction periods longer than 30 days.

In particular, since last November, the system has been improved to require labor costs to be paid exclusively through 'labor cost dedicated accounts,' fundamentally preventing labor cost delays caused by account seizures of primary and subcontractors.

At the same time, to block arbitrary use of advance payments by primary contractors, the usage details of advance payments must be managed through the computerized system.

Starting this year, a real-time inquiry function has been added to track the flow of construction payments from billing to payment.

Since last month, to enhance financial service convenience for contractors, partnerships have been established with Shinhan Credit Union and Jeonbuk Bank, expanding the service to a total of 10 financial institutions.

Meanwhile, the 'Payment Confirmation System' was introduced by the province in September 2018 to prevent irregularities such as delayed or withheld payments by electronically managing primary and subcontractor payments, material and equipment payments, and labor costs from billing to payment, and by making payments through dedicated accounts with withdrawal restrictions.

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