Fair Trade Commission of Korea. (Photo courtesy of the Korea Fair Trade Commission)

 

[Alpha Biz= Paul Lee] South Korea’s Fair Trade Commission (FTC) has initiated deliberation procedures against four construction companies suspected of unfairly shifting industrial safety management costs onto subcontractors through abusive contractual clauses.

The companies under review are POSCO E&C, KR Industry, Dasan Construction Engineering, and NC Construction.

According to the FTC, on-site inspections revealed indications of violations of the Subcontracting Act, including the use of unfair special contract terms that transferred safety management responsibilities and related costs to subcontractors.

The commission plans to determine whether the companies violated the Subcontracting Act after completing its deliberations, while ensuring that the firms are granted full procedural rights, including opportunities to present their opinions and defenses.

The case underscores the FTC’s continued scrutiny of unfair practices in the construction sector, particularly those related to workplace safety and the protection of subcontractors.

 

 

 

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