One Construction Union Member Receives 200 Million KRW Monthly Fee... Threats and Extortion Charges Applied for Hiring Coercion

Government Announces Measures to Eradicate Illegal Activities at Construction Sites
Legislation to Enforce Immediate Punishment with Up to 10 Years Imprisonment

[Asia Economy Reporter Cha Wanyong] The government has rolled up its sleeves to eradicate the deeply rooted illegal activities of construction labor unions at construction sites. Acts such as forced recruitment and extortion of union full-time fees and monthly dues through threats will be immediately punishable under the Criminal Act for coercion, threats, and extortion, with penalties of up to 10 years imprisonment or fines of 20 million KRW. Additionally, for acts such as forced monthly dues and occupation of construction sites with machinery and equipment, grounds for sanctions such as business registration or license cancellation will also be established.

On the 21st, the Ministry of Land, Infrastructure and Transport announced these measures, prepared in collaboration with related ministries including the Ministry of Justice, Ministry of Employment and Labor, and the National Police Agency, at the Cabinet meeting as part of the ‘Measures to Eradicate Illegal and Unfair Acts at Construction Sites.’

Legislative Supplement to Block and Prevent Illegal and Unfair Acts

On the 19th, prior to the meeting between primary contractors regarding illegal activities at construction sites, Won Hee-ryong, Minister of Land, Infrastructure and Transport, visited a construction site with officials.
[Photo by Ministry of Land, Infrastructure and Transport]

The government plans to prioritize the use of existing regulations to ensure swift sanctions and punishments for illegal and unfair acts at construction sites, while simultaneously implementing necessary legislative supplements and other measures.

First, the extortion of union full-time fees and monthly dues through forced recruitment and threats will be immediately punished under the Criminal Act for coercion, threats, and extortion. Penalties include imprisonment of up to 5 years or fines up to 30 million KRW for coercion, imprisonment of up to 3 years or fines up to 5 million KRW for threats, and imprisonment of up to 10 years or fines of 20 million KRW for extortion.

In cases where construction sites are occupied using machinery and equipment, the crime of obstruction of business under the Criminal Act (up to 5 years imprisonment or fines up to 15 million KRW) will be applied, and illegal strike actions will be immediately punished under the Labor Union Act (up to 3 years imprisonment or fines up to 3 million KRW).

In cases of work slowdowns (so-called legal strikes) arising from non-payment of monthly dues, related safety regulations will be rationally adjusted to ensure they are operated in line with the purpose of preventing industrial accidents. Furthermore, to reduce the abuse of employment restrictions related to illegal foreign worker recruitment at construction sites and to facilitate smooth workforce supply, reasonable adjustments to the duration of sanctions will be pursued.

This plan includes measures not only against unfair acts by labor unions but also to protect construction workers from illegal acts by construction businesses such as illegal subcontracting and wage arrears.

First, a reward system for reporting will be implemented for reports received by the Fair Construction Support Center to encourage reporting, and continuous on-site inspections will be conducted at suspected illegal subcontracting sites (such as early warning alarms from the Construction Industry Information Service).

To prevent construction workers’ livelihoods from being threatened by wage arrears due to delayed payment of construction fees, the Public Procurement Service’s payment system will be improved. If labor costs and other payments are delayed beyond the payment deadline, automatic notifications will be sent to the payment officer before the due date to ensure payments are made on time.

To improve the working environment for construction workers, convenience facilities such as restrooms and break rooms at construction sites will be expanded. Plans are also underway to extend the improvement measures for construction worker convenience facilities (installation of air-conditioned and heated break rooms, inclusion of welfare facility operating costs in construction fees, etc.) currently implemented at LH-ordered sites to all public institutions under the Ministry of Land, Infrastructure and Transport.

Continued Strengthening of Government-wide Inspections and Crackdowns on Illegal Acts

[Image source=Yonhap News]

The government has actively responded to illegal acts since the end of last year with the operation of a dedicated team at the Ministry of Land, Infrastructure and Transport and a 200-day special crackdown by the National Police Agency, coinciding with the full-scale promotion of labor reform. Going forward, the government plans to continue inspections and crackdowns on illegal acts at the government-wide level to establish a sound construction labor union culture.

The Ministry of Land, Infrastructure and Transport is focusing on eradicating illegal acts such as forced monthly dues related to tower cranes. According to the analysis of the survey results, a total of 438 people received monthly dues. The top 20% (88 people) received an average of 95 million KRW, and the individual who received the most was confirmed to have received a total of 220 million KRW (approximately 17 million KRW per month) in monthly dues.

The National Police Agency will conduct high-intensity crackdowns and investigations into organized illegal activities at construction sites. As of the 17th, a total of 400 cases involving 1,648 people have been investigated, with 63 people sent for prosecution (20 detained), and investigations are ongoing for 1,535 people. The Ministry of Employment and Labor plans to conduct focused guidance and inspections on illegal labor relations and forced recruitment at construction sites from March to April, while strengthening ex officio investigations to strictly respond to illegal acts.

Additionally, the government plans for the regional offices and branches of the National Land Management Office, city and provincial police agencies, and local employment and labor offices to collaborate by sharing information between agencies, conducting inspections of reported illegal act sites, and performing regular inspections of major sites within their jurisdictions.

Related associations such as the Korea Construction Association, Korea Specialty Contractors Association, and Korea Housing Association will also actively support member companies affected by illegal acts by establishing anonymous reporting centers internally and providing legal advice on damage compensation lawsuits.

Won Heeryong, Minister of Land, Infrastructure and Transport, stated, "Normalization of construction sites is necessary to realize labor reform, one of the three major reform tasks of the current government. Through this plan, the government will concentrate its efforts until illegal acts at construction sites are eradicated."