<기사제목>Ministry of SMEs and Startups Investigates 3,000 Consigned Companies... Recovers 19.3 Billion KRW in Unpaid Delivery Payments

Ministry of SMEs and Startups Announces Results of Compliance Investigation on Win-Win Transaction Act
744 Consignment Companies Detected... Unfair Trade Corrected
4 Companies Refusing Voluntary Improvement, Fair Trade Commission Action Requested

Reference photo [Image source=Yonhap News]

[Asia Economy Reporter Kim Bo-kyung] The Ministry of SMEs and Startups announced on the 24th that it resolved damages to subcontractors by ensuring payment of a total of 19.28 billion KRW from 740 consignment companies that failed to pay delivery fees.

The Ministry of SMEs and Startups released the results of a regular survey conducted since November last year targeting a total of 15,000 companies, including 3,000 consignment companies and 12,000 subcontractors.

The purpose of the survey was to investigate compliance with the "Act on the Promotion of Mutual Growth between Large Enterprises and Small and Medium Enterprises (Mutual Growth Act)" among companies engaged in consignment transactions, and to correct unfair trade practices.

This year, the Ministry identified 744 consignment companies suspected of violating the Mutual Growth Act.

Through administrative guidance and inducing voluntary improvement, 740 companies paid a total of 19.28 billion KRW including unpaid fees and delayed interest, thereby resolving damages to subcontractors.

Four Companies Failing to Implement Improvement Requests in Payment for Delivered Goods [Source: Ministry of SMEs and Startups]

The remaining 4 companies did not voluntarily improve, and although the Ministry imposed penalty points and requested improvements, they ultimately did not comply. All four consignment companies are construction firms: Ilhae in Daegu, Hyuga Construction in Sejong, Mingwang ENG in Asan, Chungnam, and Suseong General Construction in Eumseong, Chungbuk. Among them, Mingwang ENG owes more than 1 billion KRW including unpaid fees and interest.

The Ministry publicly disclosed these four companies on the Ministry’s website and the Comprehensive Portal for Consignment Transactions, and requested the Fair Trade Commission to take measures related to violations of the Subcontracting Act.

This survey expanded the number of consignment companies surveyed from 2,000 to 3,000 compared to the previous year, and extended the survey period from the second quarter (April to June) to the first half (January to June). As a result, the amount of damage improvement increased by about 15 billion KRW.

Jeong Ki-hwan, Director of the Mutual Growth Policy Division at the Ministry of SMEs and Startups, said, "We plan to continue efforts to eradicate unfair trade practices in subcontracting transactions."

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