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Fair Trade Commission Probes 18 Firms Over Delayed Subcontractor Payments
Industrial Services · Engineering & Construction · yonhap_finance · 2026-09-09
South Korea's antitrust regulator is investigating 18 companies, including major construction firms, for failing to pay subcontractors within the legal 60-day window.
What Happened
Investigation Scope: The Korea Fair Trade Commission (KFTC) has launched an investigation into 18 companies, including Woobang, E-Land Construction, and Daebang Construction, for failing to pay subcontractors within the mandatory 60-day period. This action follows a review of subcontract payment disclosures from the second half of last year.
Financial Impact: The total amount of delayed payments by these 18 firms is approximately 101.5 billion KRW, accounting for 84% of the total delayed payments reported by all monitored companies. The KFTC is currently verifying whether these companies have paid the required late interest fees.
Voluntary Correction: Under current regulations, companies that voluntarily pay the required interest within 30 days of the investigation's start may face lighter penalties, such as warnings or non-punitive corrective orders. Several of the targeted companies have already expressed their intent to rectify the situation.
Policy Shift: To encourage better compliance, the KFTC is rebranding its 'Unfair Subcontracting Reporting Center' to the 'Unpaid Subcontracting Payment Resolution Center.' This change aims to reduce the fear of retaliation among subcontractors and promote a more collaborative approach to resolving payment disputes.