Yeongdeungpo-gu to Advance Payment of 1.9 Billion KRW for Construction Fees Before Chuseok

Rapid Payment of Various Fees Including Construction and Services to 67 Companies by the 17th... Payment Period Reduced from Maximum 19 Days to 10 Days... Encouraging Advance Payment Applications and Direct Subcontractor Payment Agreements for Smooth Fund Procurement

[Asia Economy Reporter Jong-il Park] Yeongdeungpo-gu (District Mayor Chae Hyun-il) will make early payments totaling 1.9 billion KRW to 67 contracted companies ahead of the Chuseok holiday.

The aim is to significantly reduce the payment processing time for contracts related to construction, services, and supplies, thereby promoting economic stability for businesses and workers as well as revitalizing the local economy.

Typically, payment takes up to 19 days from contract completion, but the district has decided to shorten this to a maximum of 10 days, ensuring early payments to primary and subcontractors, equipment and material suppliers, and on-site workers before the holiday.

Usually, once a company fulfills contract terms, the district completes progress and final inspections within 7 to 14 days, then processes payment within 5 days after receiving the invoice.

However, ahead of Chuseok, for progress and final inspections without defects, inspections will be conducted immediately or within 7 days, and payments that were previously made within 5 days will now be made within 3 days, completing all procedures by September 17.

In particular, the district will expedite payments related to labor costs to ensure prompt disbursement, and payments for small-scale projects or goods purchases promoted by various departments and community offices will also be fully paid before the holiday.

Advance payment applications before Chuseok are also encouraged. Companies that have not yet received payments within the mandatory payment rate will be guided to apply for advances, and those meeting the requirements will be supported to ensure smooth funding.

Additionally, the district will conduct focused inspections on ongoing construction sites before the holiday to verify proper payment, preventing delayed payments of subcontracting fees and wages, thereby protecting small businesses and on-site workers from harm.

For subcontracting fees, the district recommends that direct payment agreements be made among the client, primary contractor, and subcontractor to ensure swift direct payments to subcontractors.

Chae Hyun-il, Mayor of Yeongdeungpo-gu, stated, “We have decided to make all possible efforts to pay various fees as quickly as possible this Chuseok to help alleviate the financial difficulties faced by companies during these challenging times and to enable them to enjoy a bountiful holiday. We will continue to work hard to prepare diverse support measures so that, based on mutual growth with businesses and workers, we can overcome the current crisis together and restore vitality to the local economy.”

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