Hwasun County, Shinhan Bank, and Kyobo Securities Join Forces to Introduce 'CleanPay'

"Establishing a Fair Contract Culture...
Ensuring Smooth Payments and Wage Disbursements"

Hwasun County in South Jeolla Province has joined hands with Shinhan Bank and Kyobo Securities to introduce 'CleanPay,' a next-generation electronic payment system.

Hwasun County joined hands with Shinhan Bank and Kyobo Securities to introduce 'CleanPay,' a next-generation electronic payment system. Photo by Hwasun County

On the 21st, the county announced that it held a financial business agreement ceremony in the small conference room to introduce 'CleanPay,' aiming to establish a fair contract culture and ensure smooth payments and wage disbursements.

The agreement ceremony was attended by County Governor Koo Bokgyu, Shinhan Bank Executive Director Kim Gukhwan, and Kyobo Securities Executive Director Kim Yoonsang. According to the terms of the agreement, Hwasun County will oversee project implementation and payment disbursement, Shinhan Bank will be responsible for the overall fund management system, and Kyobo Securities will be in charge of trust contract operations.

'CleanPay,' jointly developed by Shinhan Bank and Paycoms, is a next-generation electronic payment system that links a fund management system designed to prevent payment delays with a bond trust system.

In the event of a crisis such as a contractor's bankruptcy or insolvency, construction payment bonds are managed through a designated trust account rather than a regular bank account. This ensures the stable payment of wages to construction workers, as well as payments for subcontractors, equipment, and materials. The primary contractor can also monitor the flow of disbursed funds in real time, preventing the misuse of advance payments and ensuring transparency in fund execution.

The county plans to apply the next-generation CleanPay system to construction projects with a contract value of 1 billion KRW (approximately 1 million USD) or more during the two-year agreement period. After analyzing its strengths and weaknesses and evaluating its effectiveness, the county will decide whether to expand its use.

County Governor Koo Bokgyu stated, "We will work to prevent potential issues at construction sites caused by instability in the subcontract payment structure, and guarantee direct payment of construction costs and workers' wages, so that there will be no cases of wage arrears in projects commissioned by Hwasun County."

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