Fair Trade Commission Issues Corrective Order to Dain Construction for Withholding Subcontract Payments

The Fair Trade Commission announced on the 19th that it will issue a corrective order to Dain Construction for failing to pay subcontracting fees.

The Commission decided to order Dain Construction, which failed to pay subcontracting fees worth approximately 6.2 billion KRW to 19 subcontractors, to pay the fees and delayed interest for violating the Subcontracting Act.

Dain Construction entrusted 25 construction projects to 17 subcontractors and received the results from April 2017 to May 2021. However, it has not paid about 5.4 billion KRW in subcontracting fees to date. It was also found that Dain Construction failed to pay approximately 800 million KRW in delayed interest on subcontracting fees to 18 subcontractors.

Dain Construction is a company that constructs residential-commercial complexes and officetels under the brand name "Royal Palace." Its sales shrank from 357.6 billion KRW in 2017 to 18.5 billion KRW in 2021. The Fair Trade Commission stated, "We will continuously monitor whether corrective orders are implemented so that the 19 subcontractors can receive relief for their damages."

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