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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] The Ministry of Land, Infrastructure and Transport (MOLIT) announced measures to combat illegal subcontracting in the construction industry, including enhanced whistleblower rewards and stricter administrative sanctions. The revised Enforcement Decree of the Framework Act on the Construction Industry will be open for public comment from December 12 to January 21.
Key points of the proposed amendment include:
Relaxed eligibility and increased amounts for whistleblower rewards – whistleblowers no longer need to provide evidence to qualify, and rewards will rise from a maximum of KRW 2 million to KRW 10 million.
Stricter administrative penalties for illegal subcontracting – business suspension periods will increase from 4–8 months to 8–12 months, and fines will rise from 4–30% of the subcontract amount to 24–30%.
Extended restrictions on public construction participation – from the current 1–8 months to 8 months–2 years for offenders.
Basis for public disclosure of habitual wage-defaulting contractors – the amendment will formalize procedures currently handled through internal guidelines, ensuring transparency and compliance with contractors’ rights.
MOLIT emphasized that these reforms aim to reinforce compliance, protect subcontractors, and deter repeated violations within the construction sector.
알파경제 Kim Jisun (stockmk2020@alphabiz.co.kr)
