Gumi City to Strengthen Support for Local Construction Companies... Launches Subcontract Payment Guarantee Fee Support Program

A System Introduced for the First Time in North Gyeongsang Province
Expectations for Revitalizing the Local Construction Industry

Gumi City in North Gyeongsang Province will begin full-scale implementation of the “Subcontract Payment Guarantee Fee Support Project” in the second half of this year, aiming to revitalize the stagnant local construction industry and resolve the difficulties local construction companies face in securing contracts.

Gumi City Hall in Gyeongbuk.

This project is the first of its kind to be introduced in North Gyeongsang Province and is expected to provide practical support to local construction companies.

Under this support project, Gumi City will cover the guarantee fees that local construction companies are required to pay when signing subcontract agreements. Through this initiative, local construction companies will not face difficulties in securing funds, while primary contractors will benefit from incentives by collaborating with local firms.

The city will also proceed with amending relevant ordinances and establishing enforcement rules in parallel. It plans to closely monitor contract statuses at construction sites and build a systematic inspection system that includes private construction projects. Detailed guidelines will be established to create a fair contracting environment and protect local companies.

Kim Jangho, Mayor of Gumi, emphasized, “The construction industry is a key sector driving the local economy,” adding, “Through the implementation of this system, we will increase the contract success rate of local companies and lay the foundation for sustainable development.”

He added, “We will continue to enhance the competitiveness of the construction industry and invigorate the local economy through various policies and support measures in the future.”

This measure by Gumi City is a pioneering policy being implemented for the first time in North Gyeongsang Province, and as it is likely to spread to other local governments, it is expected to bring positive changes to the local construction industry.

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