The Korea Land and Housing Corporation (LH) reported that wage, material, and equipment payment claims at construction sites it oversees have surpassed last year's total within just nine months. More than 70% of these claims remain unresolved, prompting calls for enhanced management and oversight of public projects.
According to data submitted by LH to the National Assembly's Land, Infrastructure and Transport Committee on October 20, claims reported from January to September this year amounted to approximately 1.243 billion won, a 53.2% increase compared to last year's total of about 812 million won. The number of claims also rose from five last year to six by September this year.
As of September, unresolved claims accounted for about 881 million won, or 70.9% of the total reported. Among these, the highest unresolved amount was for combined claims involving wages, materials, and equipment, totaling 663.04 million won. This was followed by material claims at 180.58 million won, wage claims at 33 million won, and equipment claims at approximately 4.61 million won. Combined claims represented 76.3% of this year's total reported claims, amounting to 948.21 million won.
There have been confirmed instances of unpaid wages owed to workers. For example, on August 18, a claim of 110 million won for unpaid wages was reported at the public-private rental housing project in Uiwang, Gyeonggi Province, involving the main contractor, DA Construction. Of the 22 affected workers, 77 million won was paid, but as of September 9, 33 million won remained unpaid.
In some cases, it has taken over a year to resolve payment issues. At the construction site for the Happy and National Rental Apartments in Uiseong, Gyeongsangbuk-do, a claim of approximately 50.22 million won for unpaid wages to subcontractor Gyeongbok Construction was only settled in December last year, 516 days after it was reported in July 2024.
The ongoing issues of payment delays and arrears at public projects have raised questions about the effectiveness of LH's oversight and penalties. LH operates a system for designating management subcontractors based on the severity of violations, including payment arrears. However, even designated subcontractors can participate in projects if they meet certain criteria during the subcontract review process.
In September, LH announced its commitment to achieving 'zero wage and payment arrears' at construction sites, pledging to strengthen penalties against delinquent companies and increase site inspections. To enhance the effectiveness of these measures, there are calls for a robust follow-up management system to continuously verify the completion of payments for previously reported claims.
Representative Kang Dae-sik stated, "For the goal of zero arrears to be more than just a slogan, there must be effective penalties and a solid follow-up management system for delinquent companies. LH should not stop at merely designating delinquent companies but must ensure that payment completion is verified and impose substantial penalties on repeat offenders to prevent recurrence."
* This article has been translated by AI.
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