[Column] 'Jeonjaka De' as the Starting Point of Digital Innovation in the Construction Industry

Sanghyun Lee, Head of Gwangju Branch, Construction Workers' Mutual Aid Association

Sanghyun Lee, Director of the Gwangju Branch of the Construction Workers' Mutual Aid Association

Digital innovation is taking place in the construction industry as well. Smart technologies such as artificial intelligence, the Internet of Things, cloud computing, big data, unmanned aerial vehicles, and 3D printing are being actively introduced to construction sites.

The construction method is shifting from the traditional approach that relied on manual labor to a new method suitable for the digital age. At the starting point of this digital innovation is the ‘Electronic Card System for Construction Workers.’

The Electronic Card System for Construction Workers is a system where construction workers tag their electronic cards on terminals installed at construction sites to directly record their attendance for reporting the number of working days for retirement pension contributions.

This electronic method systematically manages the workforce of construction workers to ensure transparency at construction sites and to prevent omissions in retirement pension contributions.

The electronic card system began as a pilot project in September 2015 at six sites, was legislated in November 2019 based on the results, and has been implemented as a reporting method for the retirement pension system since November 27, 2020.

From July 2022, the application sites have been significantly expanded (mandatory application for public construction projects over 5 billion KRW and private construction projects over 10 billion KRW). Gradually, from January 2024, it will be expanded to all projects subject to mandatory retirement pension enrollment (public projects over 100 million KRW and private projects over 5 billion KRW).

The introduction of the electronic card system is expected to bring the following effects.

First, it prevents omissions in retirement pension reporting and wage arrears. By having construction workers directly record and verify their work history through electronic card tagging, omissions in retirement pension reporting can be prevented.

Also, due to the subcontracting structure by specialized trades at construction sites, employment relationships were often unclear, making it difficult to prove one’s work history. However, by using electronic card tag records as proof, wage arrears issues can be resolved.

Second, real-time output status can be checked. Since electronic card tag records are transmitted and aggregated in real time to the pension association’s ‘Electronic Card Work Management System,’ it is now possible to check who did what work, when, and where in real time.

This enables systematic workforce management at construction sites and further allows accumulated electronic data to be used for policy-making. Moreover, even if various accidents occur, the real-time output information allows for quick identification and response to deployed personnel.

Third, it helps manage the careers of construction workers. Due to the nature of construction day laborers frequently moving between sites, it was difficult to have their career and expertise recognized even if they worked in a specific trade for a long time.

However, the accumulated career information through the operation of the electronic card system, combined with qualification and education/training information, serves as the basis for the ‘Construction Worker Skill Grading System,’ which classifies construction workers into beginner, intermediate, advanced, and special grades.

The introduction of the electronic card system will bring a different working environment to construction sites than before. There may be some inconvenience in adapting to the changed system initially due to the introduction of the new system.

However, digitalization of the construction industry is an irreversible trend and will bring positive changes to construction sites.

In summary, the electronic card system is a beneficial system for all stakeholders in the construction industry, including construction workers and construction employers.

It not only protects the rights and interests of construction workers but also provides career management that can suggest job prospects for construction workers. Employers can improve the convenience of wage payment systems through systematic workforce management.

Additionally, ordering agencies can receive detailed work information to enhance the efficiency of supervision and management. Thus, the electronic card system is the catalyst for digital innovation that will bring positive changes to the construction industry.

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