Line Construction, known for the apartment "Easy the One," has faced sanctions from the Fair Trade Commission for failing to pay interest on delayed subcontract payments.
On July 27, the Fair Trade Commission announced it would impose a corrective order on Line Construction for violating its obligation to pay interest on delayed subcontract payments while outsourcing stonework, gas installation, and telecommunications work for apartments.
According to the commission's investigation, Line Construction did not pay a total of 1.16 billion won in interest for delayed payments to 64 subcontractors from October 2019 to July 2024, exceeding the 60-day limit from the date of receipt of the goods.
The commission explained that this constitutes a violation of the Subcontracting Act. Under current law, if a primary contractor pays subcontractors more than 60 days after receiving the goods, they must also pay interest for the excess period at the rate announced by the commission.
However, after the investigation began, Line Construction paid the entire amount of unpaid interest, totaling 1.16 billion won. Although the initial violation amount was deemed minor enough to warrant a warning, the commission decided to issue a formal corrective order due to the significant number of affected subcontractors and the substantial amount of unpaid interest, emphasizing the need to prevent future occurrences.
A commission official stated, "With the establishment of a new construction subcontracting investigation team in the second half of the year, we will strengthen monitoring of unfair subcontracting practices among construction companies ranked below 50 in construction capability assessments."
On July 27, the Fair Trade Commission announced it would impose a corrective order on Line Construction for violating its obligation to pay interest on delayed subcontract payments while outsourcing stonework, gas installation, and telecommunications work for apartments.
According to the commission's investigation, Line Construction did not pay a total of 1.16 billion won in interest for delayed payments to 64 subcontractors from October 2019 to July 2024, exceeding the 60-day limit from the date of receipt of the goods.
The commission explained that this constitutes a violation of the Subcontracting Act. Under current law, if a primary contractor pays subcontractors more than 60 days after receiving the goods, they must also pay interest for the excess period at the rate announced by the commission.
However, after the investigation began, Line Construction paid the entire amount of unpaid interest, totaling 1.16 billion won. Although the initial violation amount was deemed minor enough to warrant a warning, the commission decided to issue a formal corrective order due to the significant number of affected subcontractors and the substantial amount of unpaid interest, emphasizing the need to prevent future occurrences.
A commission official stated, "With the establishment of a new construction subcontracting investigation team in the second half of the year, we will strengthen monitoring of unfair subcontracting practices among construction companies ranked below 50 in construction capability assessments."
* This article has been translated by AI.
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