Fair Trade Commission "Shinhan Comprehensive Construction Fails to Comply with Subcontract Payment Order... Prosecutor Referral"

[Sejong=Asia Economy Reporter Joo Sang-don] The Fair Trade Commission announced on the 9th that it has decided to prosecute Shinhan Comprehensive Construction and its CEO for failing to comply with the corrective order to "pay subcontracting fees."

On May 11 of this year, the Fair Trade Commission issued a corrective order to Shinhan Comprehensive Construction to promptly pay the unpaid subcontracting fees of 44 million KRW and the delayed interest to the subcontractor. However, despite the Fair Trade Commission's corrective order and two subsequent enforcement reminder letters, Shinhan Comprehensive Construction did not fully comply with the contents of the corrective order. The Subcontracting Act stipulates that failure to comply with a corrective order is punishable by a fine of up to 150 million KRW.

A Fair Trade Commission official stated, "Since it has been over a year since Shinhan Comprehensive Construction received the corrective order and there is still no intention to comply, the necessity for sanctions is high, leading to the decision to prosecute both the construction company and its CEO. Given that the subcontractor could face severe financial difficulties due to the non-payment of subcontracting fees, this prosecution by the Fair Trade Commission is expected to ensure the effectiveness of the subcontracting fee payment order and contribute to preventing similar cases from recurring."

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