Yeongdeungpo-gu Eradicates Wage Arrears for Construction Workers... Seoul's First 'Clean Pay System' Introduced

Prevent Account Seizure During Crises Like Bankruptcy to Ensure Stable Payment of Workers' Wages
November 28 Business Agreement Signed with Shinhan Bank and Paycoms...Fundamental Prevention of Construction Payment Delays
Establishing Fair Contract Culture and Transparent Fund Execution Process Through Leading Administration

Yeongdeungpo-gu (District Mayor Choi Ho-kwon) has taken the lead in eradicating widespread wage arrears among construction workers by becoming the first autonomous district in Seoul to introduce the 'Shinhan Clean Pay Electronic Payment System' (hereinafter referred to as the Clean Pay System).

The Clean Pay System, developed by Shinhan Bank, is an innovative payment system that links a special-purpose fund management system designed to prevent wage arrears with a bond trust system. By using a trust account for construction payment claims, wages for construction workers, subcontractor payments, and equipment and material payments are stably paid regardless of the construction company's account seizure in cases of bankruptcy or insolvency.

Accordingly, on November 28, the district office signed a business agreement in the mayor’s office with Shinhan Bank and Paycoms Co., Ltd. to introduce the Shinhan Clean Pay System. Attendees at the signing ceremony included Yeongdeungpo District Mayor Choi Ho-kwon, Shinhan Bank Vice President Park Seong-hyun, and Paycoms Executive Director Jeong Se-chang.

The agreement institutions agreed to perform the following roles based on mutual cooperation to establish a fair contract culture and ensure smooth payment of construction fees: ▲Yeongdeungpo District Office will approve payment claims such as construction fees and pay the approved claims ▲Shinhan Bank will oversee the payment system operations ▲Paycoms will manage the Clean Pay System operations.

Through this, the district expects to fundamentally block the possibility of payment arrears arising in subcontracting relationships, support stable business operations for construction companies, and establish a more transparent fund execution process.

Yeongdeungpo District Mayor Choi Ho-kwon stated, “I hope that the Clean Pay System, introduced for the first time in Seoul, will lead to the establishment of a proper construction culture and act as a lubricant that revitalizes the construction industry.” He added, “We will continue to strive to create an environment where everyone can coexist through pioneering and exemplary administration.”