Major Law-Violating Companies Face 'Participation Restrictions in Gyeonggi-do Support Projects' Starting This Year

Within 2 Years from the Announcement Date, 11 Laws in 4 Fields Applicable... Notice on the 7th

[Asia Economy Reporter Ra Young-cheol] Companies that violate major laws will be restricted from participating in various support projects in Gyeonggi-do starting this year.

Gyeonggi-do announced on the same day that following the enactment of the "Ordinance on Restricting Support for Companies Violating Laws in Gyeonggi-do," which was the first of its kind nationwide last year, it has issued the "'Standards for Restricting Support for Companies Violating Laws in Gyeonggi-do Corporate Support Projects'" effective from the 7th as a follow-up measure this year.

The main point is to restrict companies that have violated any of 11 laws in four areas?fair trade, labor, environment, and taxation?within two years from the application date from participating in various corporate support project calls by the province.

The relevant laws include ▲Fair Trade area (Fair Trade Act, Subcontracting Act, Labeling and Advertising Act) ▲Labor area (Labor Standards Act, Industrial Safety and Health Act) ▲Environment area (Waste Management Act, Air Environment Conservation Act, Noise and Vibration Control Act, Water Environment Conservation Act) ▲Taxation area (Framework Act on National Taxes, Framework Act on Local Taxes).

If past violations are revealed after the selection of support recipients, measures such as returning subsidies and restricting participation for three years will follow. However, if an objection is filed within seven days from the notification date of the violation, relief will be determined through review.

Additionally, the province has designated exceptions and deferred projects including ▲guidance and improvement projects for legal compliance ▲small-scale projects ▲emergency non-competitive projects ▲funding and loan support projects ▲city/county subsidy (matching) projects ▲projects aimed at supporting small business owners ▲investment attraction support projects.

The province plans to apply restrictions to projects based on future circumstances and changes in internal and external conditions, and intends to supplement and announce detailed standards annually through system improvements.

The plan is to encourage voluntary participation by companies by establishing a foundation where companies that comply with regulations receive more support and can grow fairly, rather than growth focused solely on external expansion.

Through this, the goal is to create and establish a "sustainable development ecosystem for companies" based on resolving unfair issues raised among companies during project selection and spreading a culture of legal compliance.

No Tae-jong, Head of the Specialized Corporate Support Division, said, "This ordinance and announcement are a preemptive response to improve awareness of corporate management amid the transition to a global business environment, aiming to create a fair and equitable corporate support ecosystem."

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