Daon Construction Sanctioned by Fair Trade Commission for Nonpayment of Subcontracting Fees

[Image source=Yonhap News]

Daon Construction, which failed to pay subcontractors for construction fees and delay interest, will be sanctioned by the Fair Trade Commission.

On the 11th, the Fair Trade Commission announced that it would impose corrective orders on Daon Construction for violating the Subcontracting Act.

According to the Fair Trade Commission, Daon Construction subcontracted glass work to a subcontractor during the green remodeling construction of a public building (daycare center) contracted from Yeongyang-gun, Gyeongbuk Province, and despite the completion of the construction in June 2022, it did not pay the subcontracting fee of 17.8 million KRW and delay interest of 350,000 KRW.

The Fair Trade Commission explained that Daon Construction's actions violated Article 13, Paragraphs 1 and 8 of the Act on the Fairness of Subcontract Transactions.

The Fair Trade Commission stated, "This measure is significant in that it detected and sanctioned a construction company participating in a publicly ordered construction project for failing to properly pay subcontractors despite having received the construction fees."

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