Full Implementation of President Lee's Directive
Public Sector Urged to Lead by Example
Crackdown at 1,814 Sites Nationwide Over Two Months
262 Violations Detected at 95 Locations
90% of Illegal Subcontracting Cases Found in Private Sector
"Strengthen Continuous Monitoring Systems"
Kim Yoonduk, Minister of Land, Infrastructure and Transport, is speaking at the joint crackdown on illegal subcontracting site meeting held on the 24th at the construction site of Subangsa Apartments Section 1 in Dongjak-gu, Seoul. On the right is Kim Younghun, Minister of Employment and Labor. Ministry of Land, Infrastructure and Transport
Kim Yoonduk, Minister of Land, Infrastructure and Transport, and Kim Younghun, Minister of Employment and Labor, visited the construction site of a new public housing project by Korea Land and Housing Corporation (LH) in Dongjak-gu, Seoul, on the afternoon of the 24th to conduct a joint inspection for illegal subcontracting. This marks the second time since September 18 that the two ministers have jointly inspected a construction site. This is a key follow-up measure to President Lee Jaemyung's directive for a strict response, after he criticized the subcontracting structure as a main cause of serious industrial accidents at construction sites.
According to the Ministry of Land, Infrastructure and Transport and the Ministry of Employment and Labor, the two ministers directly inspected the site, checking the status of direct construction and subcontracting by work type, the qualifications of subcontractors, whether illegal re-subcontracting was taking place, the payment status of subcontract fees and workers' wages, and compliance with safety measures.
Previously, President Lee, at a cabinet meeting on July 29, identified "complacent attitudes" and the "subcontracting structure" as reasons for the repeated occurrence of serious industrial accidents. President Lee emphasized, "When the main contractor subcontracts four or five times and the actual construction is carried out at about half the original contract amount, there is not enough funding for safety measures," adding, "Safety is an obligation and should not be considered a cost."
Following President Lee's directive, the two ministries carried out a rigorous crackdown on illegal subcontracting at 1,814 construction sites nationwide from August 11 to September 30. As a result, 106 companies were found to have committed 262 violations at 95 sites.
By project owner, the detection rate for private construction projects was more than ten times higher than for public projects. While 27 violations were found at 16 out of 1,228 public construction sites (1.3%), 235 violations were uncovered at 79 out of 586 private construction sites (13.5%). Although private sites accounted for only 32% of all inspected locations, they represented 90% of the violations detected.
By type of violation, re-subcontracting was the most frequent with 121 cases, followed by subcontracting to unregistered parties with 112 cases, and subcontracting to unqualified parties with 29 cases.
Among the 106 companies caught, 27 (25.5%) were main contractors and 79 (74.7%) were subcontractors. All main contractors were general construction companies, and among the subcontractors, 74 were specialized construction companies, making up the majority.
After the inspection, Minister Kim Yoonduk stated, "Illegal subcontracting directly leads not only to shoddy construction but also to wage arrears and safety issues, so not a single case should be tolerated. If a construction project is commissioned by a public institution, the public institution as the client must thoroughly manage the subcontracting process directly." He added, "If the public sector does not set the right example, the sites themselves will not change."
He continued, "All public institutions ordering construction projects should strengthen continuous inspection and monitoring systems, like the in-house Unfair Subcontracting Resolution Center at LH, to proactively prevent illegal subcontracting. If any issues are found, please take strict action without exception."
Minister Kim further stated, "The Ministry of Land, Infrastructure and Transport, which oversees construction sites, and the Ministry of Employment and Labor, which is responsible for workers' safety and wages, are jointly conducting site crackdowns to demonstrate the government's clear determination to eradicate illegal practices at construction sites. Going forward, both ministries will continue to work together to create construction sites free from illegal practices and wage arrears, and ensure safe environments where workers can work with peace of mind."
Minister Kim Younghun said, "From the perspective that the public sector should be a model employer, public institutions must make special efforts to prevent safety accidents and wage arrears at sites they commission. Next year as well, we will establish a close cooperation system to ensure that no one dies, is injured, or fails to receive their wages at construction sites."
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