[Asia Economy Reporter Kim Min-young] The Ministry of Land, Infrastructure and Transport (MOLIT) will conduct on-site investigations of cement transportation companies subject to business commencement orders.
On the morning of the day, MOLIT announced that following the review and resolution to issue business commencement orders to transportation operators and drivers in the cement sector at the Cabinet meeting, 76 investigation teams composed of MOLIT, local governments, and police will simultaneously conduct on-site investigations of approximately 200 cement transportation companies nationwide.
Earlier, Minister of Land, Infrastructure and Transport Won Hee-ryong issued business commencement orders against those in the cement industry who collectively refused transportation and participated in the general strike of the Korean Confederation of Trade Unions Cargo Solidarity. This is the first case of applying the business commencement order system since it was introduced in 2004 during the Roh Moo-hyun administration.
Minister Won said, "We are entering a very serious crisis due to unjustified collective transportation refusal," adding, "The business commencement order is issued targeting the cement sector, which is judged to be the most urgent for logistics normalization, considering the scale of damage and ripple effects."
MOLIT explained that it has the authority to conduct on-site investigations under the Act on the Transport Business of Freight Motor Vehicles. According to this Act, if there is non-compliance with the business commencement order, sanctions may be imposed, and transportation operators or owners/users of freight motor vehicles may be required to report on matters related to their business and freight charges or submit documents. If necessary, affiliated officials may enter the operator’s business premises to inspect ledgers, documents, and other items or question related persons.
During this on-site investigation, the names and addresses of freight vehicle owners who transact with the relevant transportation companies will be identified, and the actual transportation status and refusal status will be confirmed. Furthermore, if it is judged that the transportation company is refusing transportation at the company level, a business commencement order will be initially delivered to the company, and if freight vehicle owners who refuse transportation are confirmed, the business commencement orders will be sent to their addresses.
Additionally, if freight vehicles participating in collective transportation refusal are identified during the on-site investigation, license plate verification and further investigation will be conducted to confirm the names and addresses of the freight vehicle owners, after which business commencement orders will be delivered.
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