Photo courtesy of Yonhap News

 

[Alpha Biz= Paul Lee] South Korea’s Korea Fair Trade Commission (KFTC) has identified illegal practices by Sunwoo, an affiliate of LS Group, for issuing incomplete subcontract agreements lacking required signatures or seals.

On April 2, the KFTC announced that it had imposed corrective orders on Sunwoo for improperly issuing subcontract documents between February 2021 and June 2022 while outsourcing electrical and instrumentation works.

Electrical and instrumentation works refer to tasks involving power supply systems for production facilities and the control of industrial equipment.

According to the KFTC, Sunwoo subcontracted a total of 54 electrical and instrumentation projects across seven sites at the Ulsan plant of LS MnM during the period in question.

Among these, one main construction project and 47 additional works across seven sites were found to have been issued with incomplete contracts that failed to specify detailed work scope and locations, and omitted signatures or seals from the contracting parties.

Under South Korea’s Subcontracting Act, key contractual terms must be documented in writing and formally executed with signatures or seals.

The KFTC emphasized that its action reflects ongoing concerns over the persistent practice of issuing inadequate written contracts at construction sites, which undermines the rights and protections of subcontractors.

 

 

 

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