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Seoul City Launches Inspection on Wage Arrears at Construction Sites

Operation of 'Special Inspection Team for Wage Arrears Prevention' until the 5th of next month
Labor attorneys and lawyers inspect wage arrears and delayed payments
Targeting 10 Seoul city-commissioned sites... Administrative measures possible

The Seoul Metropolitan Government is conducting a focused inspection on the status of unpaid construction payments and wages at construction sites ahead of the Lunar New Year holiday. The inspections will target construction sites commissioned by Seoul, and measures such as business suspension or fines will be taken depending on any violations found.


On the 26th, Seoul announced that from the 29th of this month to the 5th of next month, it will operate a 'Special Inspection Team for Preventing Payment Delays' to check the payment compliance of construction costs, wages, materials, and equipment fees at construction sites.


The inspection targets 10 construction sites commissioned by Seoul that have been identified as 'vulnerable to payment delays.' The team, composed of experts such as labor attorneys, lawyers, and engineers called 'Honorary Subcontracting Ombudsmen,' along with Seoul city officials, will visit and inspect the construction sites directly.


The inspection team will focus on verifying the execution and fulfillment of construction-related payments, the appropriateness of labor contracts and construction equipment lease agreements, aiming to enhance the effectiveness of payment delay prevention activities. For disputes identified during the inspection, minor issues will be resolved amicably through legal consultation or mediation by the Subcontracting Ombudsmen, while serious or illegal matters will be addressed according to relevant regulations, including business suspension, fines, and bidding participation restrictions. Additionally, from the 29th to the 8th of next month, a concentrated reporting period for subcontracting payment delays will be set, during which on-site rapid inspections will be conducted for sites with multiple or repeated complaints.

Seoul City Launches Inspection on Wage Arrears at Construction Sites [Provided by Seoul City]

Seoul expects that operating the 'Special Inspection Team for Preventing Payment Delays' will reduce damages to workers, construction equipment rental businesses, and subcontractors who have not received payments owed to them at construction sites. Over the past three years, the 'Seoul Subcontracting Irregularities Reporting Center' has received a total of 612 reports, resolving approximately 5.3 billion KRW in unpaid amounts, contributing to the protection of subcontractors' rights and the resolution of payment delays.


Park Jae-yong, Chairman of the Seoul Metropolitan Government Audit Committee, stated, "We will systematically inspect construction projects commissioned by Seoul, its affiliated organizations, and autonomous districts to ensure that various subcontracting payments such as wages and construction equipment rental fees are not delayed, and we will also strive to improve systems to prevent payment delays."


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