(Photo= Yonhap news)

 

[Alpha Biz= Reporter Kim Jisun] The Fair Trade Commission (FTC) has sanctioned Daesang Construction for failing to pay subcontractor fees.

On the 7th, the FTC announced that it had issued a corrective order to Daesang Construction for violating the Fair Transactions in Subcontracting Act.

Daesang Construction subcontracted interior construction work in June 2021 for a mixed-use building project in Sang-dong, Mokpo City, South Jeolla Province. Although the company took over the completed work in August, it failed to pay 139.2 million KRW of the 459.2 million KRW subcontract fee and the delayed interest by the 60-day deadline from the date of acceptance.

Additionally, Daesang Construction issued a promissory note for 200 million KRW of the subcontract fee with a maturity date exceeding the 60-day limit from the date of acceptance. It did not pay the statutory promissory note discount fee of 2.46 million KRW for the period exceeding the 60 days until maturity.

It was also confirmed that Daesang Construction did not provide the legally required payment guarantee for the subcontract fee within 30 days of the contract date.

The FTC determined that Daesang Construction violated the Subcontracting Act and issued an order to prevent recurrence. The company was also ordered to pay the outstanding subcontract fee, delayed interest, and promissory note discount fee.

The Subcontracting Act mandates that subcontract fees must be paid within 60 days of receipt of the completed work. If the payment exceeds this deadline, an annual delay interest of 15.5% must be paid for the overdue period.

 

 

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