Seoul City to Operate 'Special Inspection Team for Preventing Payment Delays' Ahead of Lunar New Year... Focus on Construction Payment Delays and Late Payments

Designated 10-Day Intensive Reporting Period for Subcontract Payment Delays Starting from the 17th
Subcontract Unfair Practice Reporting Center Operates Continuously, Resolving Approximately 10.4 Billion KRW in Payment Delays Over the Past 3 Years

[Asia Economy Reporter Lim Cheol-young] To prevent delayed payments such as construction fees, wages, materials, and equipment payments during the Lunar New Year holiday, the Seoul Metropolitan Government announced on the 9th that it will form a ‘Special Inspection Team for Delayed Payment Prevention’ and conduct special inspections on 14 construction sites selected as vulnerable to delayed payments among construction projects ordered by the city for seven days starting from the 17th.

The inspection team will consist of nine honorary subcontracting inspectors and five staff members, divided into two teams to visit and inspect construction sites. The special inspection team plans to focus on the execution and fulfillment status of various construction-related payments, the appropriateness of labor contracts, and construction equipment lease agreements to enhance the effectiveness of delayed payment prevention activities.

In addition, subcontracting inspectors will provide legal consultations or mediation to encourage amicable resolutions of disputes, and depending on the severity of the inspection results, measures such as on-site corrections, business suspension, and bidding participation restrictions will be taken according to relevant regulations.

During the concentrated reporting period from the 17th to the 28th, special inspections will be conducted on sites where multiple or repeated complaints have been reported. Seoul plans to resolve delayed payments of construction fees, wages, materials, and equipment payments for projects ordered by affiliated organizations during this period and engage in preventive activities to avoid delays.

For sites with multiple or repeated complaints during the concentrated reporting period, an emergency inspection team will be formed to conduct special inspections. This inspection will also check the issuance status of the ‘Construction Equipment Rental Payment Site-specific Guarantee Certificate,’ the use of the ‘Subcontracting Guardian,’ and the operation status of the ‘Construction Worker Electronic Card System and Electronic Workforce Management System.’

Seoul operates the ‘Subcontracting Irregularities Reporting Center’ year-round and has appointed ‘Subcontracting Inspectors’ who have conducted 105 legal consultations related to subcontracting since 2019. The ‘Subcontracting Irregularities Reporting Center’ has received 721 complaints over the past three years and resolved delayed payments amounting to 8.1 billion KRW.

Furthermore, for sites with numerous complaints, a special inspection team including subcontracting inspectors with lawyer qualifications visited delayed payment sites to investigate complaints, conduct audits, or directly participate in the complaint resolution process of the ordering agency to support complaint resolution. Through this process, delayed payments amounting to 163.8 million KRW were resolved.

Kim Hyun-jung, Safety Audit Officer of Seoul City, said, “We will continue to pay close attention to ensure that various subcontracting payments such as wages and construction equipment rental fees are not delayed in construction projects ordered by Seoul City and its affiliated organizations, and we will also strive to improve systems to prevent delayed payments.”

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