In preparation for the Chuseok holiday, South Korea's Fair Trade Commission (KFTC) will operate an Unfair Subcontracting Reporting Center to ensure that small and medium-sized subcontractors receive timely payments.
The KFTC announced on August 4 that the reporting center will be established and operated from August 5 to September 23, covering a 50-day period leading up to the holiday.
As the demand for funds typically surges among small businesses during Chuseok due to bonuses and other expenses, the KFTC aims to actively encourage timely payments for subcontracting work during this period. For any unpaid amounts, the commission will promote voluntary corrections by the primary contractors and facilitate agreements between parties, with on-site investigations conducted if necessary.
The reporting center will be set up in 12 locations across five regions nationwide: seven in the Seoul metropolitan area, two in Daejeon and Chungcheong, one in Busan and Gyeongnam, one in Gwangju and Jeolla, and one in Daegu and Gyeongbuk. The two offices established in March this year in the Gyeongin area will also be operational. Notably, centers will be established not only at the KFTC headquarters and local offices but also at the Subcontracting Dispute Mediation Council.
Reporters can receive assistance regarding unpaid amounts through phone consultations, allowing for quick resolutions. Primary contractors, identified as respondents, will have the opportunity to rectify payment issues before formal proceedings are initiated.
Additionally, the KFTC has requested major economic organizations, including the Korea Chamber of Commerce and Industry, the Korea Employers Federation, the Korea Economic Association, and the Korea Construction Association, to encourage their member companies to ensure timely payments for subcontracting work before Chuseok. The commission also plans to urge cooperation to facilitate early payments for amounts scheduled for disbursement after the holiday.
During the previous Lunar New Year holiday, the KFTC's reporting center facilitated the payment of 182 cases of unpaid subcontracting fees, totaling approximately 23.2 billion won, benefiting 23,766 subcontractors with early payments amounting to about 34.8 trillion won.
A KFTC official stated, "We expect that the operation of the Unfair Subcontracting Reporting Center will contribute to alleviating the financial difficulties of small and medium-sized enterprises by promoting voluntary corrections of unpaid subcontracting fees and encouraging early payments before the holiday."
The KFTC announced on August 4 that the reporting center will be established and operated from August 5 to September 23, covering a 50-day period leading up to the holiday.
As the demand for funds typically surges among small businesses during Chuseok due to bonuses and other expenses, the KFTC aims to actively encourage timely payments for subcontracting work during this period. For any unpaid amounts, the commission will promote voluntary corrections by the primary contractors and facilitate agreements between parties, with on-site investigations conducted if necessary.
The reporting center will be set up in 12 locations across five regions nationwide: seven in the Seoul metropolitan area, two in Daejeon and Chungcheong, one in Busan and Gyeongnam, one in Gwangju and Jeolla, and one in Daegu and Gyeongbuk. The two offices established in March this year in the Gyeongin area will also be operational. Notably, centers will be established not only at the KFTC headquarters and local offices but also at the Subcontracting Dispute Mediation Council.
Reporters can receive assistance regarding unpaid amounts through phone consultations, allowing for quick resolutions. Primary contractors, identified as respondents, will have the opportunity to rectify payment issues before formal proceedings are initiated.
Additionally, the KFTC has requested major economic organizations, including the Korea Chamber of Commerce and Industry, the Korea Employers Federation, the Korea Economic Association, and the Korea Construction Association, to encourage their member companies to ensure timely payments for subcontracting work before Chuseok. The commission also plans to urge cooperation to facilitate early payments for amounts scheduled for disbursement after the holiday.
During the previous Lunar New Year holiday, the KFTC's reporting center facilitated the payment of 182 cases of unpaid subcontracting fees, totaling approximately 23.2 billion won, benefiting 23,766 subcontractors with early payments amounting to about 34.8 trillion won.
A KFTC official stated, "We expect that the operation of the Unfair Subcontracting Reporting Center will contribute to alleviating the financial difficulties of small and medium-sized enterprises by promoting voluntary corrections of unpaid subcontracting fees and encouraging early payments before the holiday."
* This article has been translated by AI.
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