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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] South Korea’s Ministry of Employment and Labor announced on September 14 that it found legal violations at 63 out of 69 construction firms inspected nationwide, with nearly half of the cases involving wage arrears.
The ministry conducted inspections from July 7 to August 25 across 10 major general contractors, including 20 subcontractors working on key projects valued at over 5 billion won. The inspections focused on labor management practices and occupational safety systems.
In total, 297 violations were identified at 63 sites, including delayed wage payments, breaches of direct wage payment rules, illegal subcontracting, and failures to comply with industrial safety regulations.
Wage arrears were uncovered at 34 firms, affecting 1,357 workers and amounting to 3.87 billion won. At one site, more than one-third of employees were owed 620 million won in unpaid wages, leading the ministry to immediately refer the case for criminal investigation, citing low prospects for repayment.
Of the remaining cases, arrears at 26 sites were cleared during the inspection process following government guidance, while seven sites, totaling 320 million won, are still in the process of rectification.
Violations included non-payment of wages and allowances, as well as failure to pay legally mandated benefits to day laborers. The ministry emphasized that firms must prioritize wage payments and ordered companies citing financial difficulties to secure repayments through asset conversions.
At seven specialized construction firms, inspectors also found unlawful practices where team leaders or job placement agencies collected wages on behalf of workers, instead of paying them directly. Authorities ordered immediate corrective action.
The inspection further uncovered one case of illegal subcontracting, a practice identified as a major cause of both wage arrears and industrial accidents in the construction sector.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
