Fair Trade Commission selects 7 companies including Youngjin General and Heesang Construction as '2021 Model Subcontracting Transaction Companies'

Granting Benefits Such as One-Year Exemption from Ex Officio Investigation

[Sejong=Asia Economy Reporter Joo Sang-don] Seven small and medium-sized enterprises, including Youngjin General Construction Co., Ltd., Heesang Construction Co., Ltd., Hyupsung General Construction Co., Ltd., Samyang Construction Co., Ltd., Samheung General Construction Co., Ltd., Songsan General Construction Co., Ltd., and Seongji Construction Co., Ltd., were selected as exemplary subcontracting transaction companies for 2021.

On the 20th, the Fair Trade Commission announced that these seven companies were selected as exemplary subcontracting transaction companies for 2021.

Since 2020, the Fair Trade Commission has prepared and implemented the "Guidelines for Selecting Exemplary Subcontracting Transaction Companies" in July of the same year to select exemplary subcontracting transaction companies suited to the circumstances of small and medium-sized enterprises. Accordingly, exemplary companies for 2021 were selected.

In September of this year, the Fair Trade Commission received applications from small and medium-sized enterprises that met the requirements of the principal business operator under the Subcontracting Act and had subcontracting transaction performance in 2020. A total of 18 companies applied (17 in construction and 1 in service).

After document screening and on-site verification, seven companies (all in construction) that met the selection criteria and demonstrated excellent performance in education and financial support for partner companies were finally selected.

A Fair Trade Commission official explained, "The seven exemplary companies paid 100% of subcontracting payments in cash within 25 days to their partner companies, had no violations of the Subcontracting Act in the past three years, and used the recently revised standard subcontracting contract by the Fair Trade Commission, leading the establishment of a desirable subcontracting transaction order. The mutual growth support mainly consisted of financial support such as technology development funds totaling 88 million KRW, and also supported commissioned education such as construction practical courses for employees of partner companies, contributing to the spread of mutual cooperation among small and medium-sized enterprises."

The Fair Trade Commission plans to exempt the selected exemplary companies from on-site investigations of subcontracting transactions for one year and notify related ministries such as the Ministry of Land, Infrastructure and Transport (3 bonus points in mutual cooperation evaluation among construction companies), the Financial Services Commission (credit rating upgrades and preferential loan interest rates at policy banks), and the Public Procurement Service (0.5 bonus points in eligibility screening for goods purchase bidding) to support them in receiving various benefits.