One hundred seventy-three small subcontractors received a total of 289 billion won in overdue payments before Chuseok. Additionally, 22.359 trillion won in subcontract payments originally scheduled for after the holiday were paid early, easing the financial burden on small businesses.
The Fair Trade Commission announced these results on October 2, detailing the operations of the 'Overdue Subcontract Payment Resolution Center.' The center operated from August 5 to September 23 at 12 locations nationwide, including the commission's headquarters and regional offices.
The amount of overdue payments distributed this year increased by 24.6% compared to 232 billion won during last year's Chuseok. The number of consultations also rose significantly, from 193 to 338, marking an increase of about 75%. The commission encouraged prompt payment from primary contractors and facilitated agreements between parties to ensure payments were received before the holiday.
One example involved a subcontractor who completed tile work at an apartment construction site but had not received some payments. The resolution center informed the primary contractor of their legal obligation to pay under subcontracting laws, resulting in the payment of 507 million won in overdue construction fees.
Another subcontractor, who performed landscaping work in an industrial complex, reached an agreement to receive 434.46 million won in overdue payments after going through a dispute resolution process.
Major companies also made early payments. Following a request from the commission to expedite payments scheduled for after Chuseok, 108 primary contractors paid 22.359 trillion won to 16,175 small subcontractors before the holiday. The commission noted that the actual amount of early payments could be higher than reported, as these figures were compiled through the resolution center.
Since last month, the commission has changed the center's name from the 'Holiday Unfair Subcontract Reporting Center' to the 'Holiday Overdue Subcontract Payment Resolution Center.' This change was made to avoid the term 'reporting,' which could deter subcontractors from seeking help due to fears of retaliation from primary contractors.
The commission will continue to follow up on cases received during the center's operation. It plans to encourage voluntary compliance for overdue payments, including interest for delays, and will take action through on-site investigations if compliance is not achieved.
A commission official stated, "We will focus our efforts on continuously monitoring unfair subcontracting practices to establish a norm of timely payments for subcontractors."
* This article has been translated by AI.
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