[Asia Economy Reporter Im On-yu] To prevent arrears in construction payments, wages, materials, and equipment fees during the Lunar New Year holiday, the Seoul Metropolitan Government announced on the 3rd that it will organize a "Special Arrears Prevention Inspection Team" to conduct special inspections from the 9th to the 18th at 12 selected construction sites vulnerable to arrears among those commissioned by the city.
The inspection team will focus on checking the execution and fulfillment status of construction-related payments, the appropriateness of labor contracts and construction machinery lease agreements, aiming to enhance the effectiveness of arrears prevention activities. In addition, subcontracting ombudsmen will provide legal consultations or mediation for disputes to encourage amicable resolutions. Furthermore, depending on the severity of the inspection results, measures such as on-site corrections, business suspension, and bidding participation restrictions will be taken in accordance with relevant regulations.
Meanwhile, the city has designated a 10-day (excluding weekends) intensive reporting period for subcontract payment arrears from the 9th to the 20th, during which additional on-site mobile inspections will be conducted at sites with multiple or repeated complaints.
This inspection will also cover the issuance status of the "Construction Machinery Rental Payment Site-specific Guarantee Certificate" (Article 68-3 of the Construction Industry Basic Act), the usage status of the "Subcontract Guardian" (Article 34, Paragraph 9 of the Construction Industry Basic Act), and the operation status of the "Electronic Workforce Management System for Construction Workers" (Article 20-5 of the Seoul Metropolitan Government Construction Contract Special Conditions, Article 14, Paragraph 3 of the Construction Workers Act).
Additionally, the city operates the "Subcontract Irregularities Reporting Center" year-round to protect the rights of subcontractors and resolve arrears. Over the past three years, it has received 567 complaints and resolved arrears amounting to approximately 7.2 billion KRW.
The city has also established a Subcontract Legal Counseling Center and appointed a "Subcontract Ombudsman" within the center to provide legal consultations related to subcontracting, having offered legal support 149 times since 2019.
Yang Seong-man, Safety Audit Officer of Seoul City, stated, "We will continue to pay close attention to ensure that various subcontract payments, including wages and construction machinery rental fees, are not delayed in construction projects commissioned by Seoul City and its affiliated organizations, and we will strive to improve systems to prevent arrears."
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