Ministry of Employment and Labor to Launch Special Inspection of Booyoung Housing over Subcontractor Wage Arrears

Labor Minister: "We Will Break the Chain of Subcontractor Wage Arrears"

The Ministry of Employment and Labor will launch a special inspection of Booyoung Housing's headquarters starting December 15. This measure aims to investigate whether there are additional issues similar to recent incidents, where workers from subcontractors responsible for building repairs for Booyoung Housing staged consecutive high-altitude protests in Naju and Wonju, citing livelihood difficulties due to unpaid wages.

Provided by the Ministry of Employment and Labor

The ministry confirmed that Booyoung Housing had withheld payments to subcontractors, citing internal audits and other reasons. As a result, the subcontractors faced financial difficulties, which in turn led to wage arrears for their workers and triggered the current problem.

Accordingly, on December 12, the ministry issued a warning to Booyoung Housing, which is highly likely to bear joint responsibility as the principal contractor under Article 44 of the Labor Standards Act, urging them to pay the subcontracting fees. The ministry also believes there is a high possibility of wage arrears at other subcontractors across the country, and is therefore conducting this special inspection of Booyoung Housing's headquarters.

During this special inspection, the ministry plans to focus on whether Booyoung Housing has violated joint liability for wage arrears owed to subcontractor workers. In addition, the ministry will conduct a comprehensive review of the headquarters' compliance with labor-related laws, and has announced that it will take strict action if any violations are found.

Minister of Employment and Labor Kim Younghoon stated, "Withholding payments to subcontractors, resulting in wage arrears, is a serious criminal act that threatens not only the workers of subcontractors but also the livelihoods of their families." He added, "We are determined to break the vicious cycle in which wage arrears occur as the burden is passed down through multi-layered subcontracting structures."