Ministry of Land and Public Institutions to Launch Joint Crackdown on Illegal Subcontracting Until Year-End

Intensive Crackdown at 275 Public Construction Sites
Reward Cap Lifted, Penalty Reductions for Voluntary Reporting

The Ministry of Land, Infrastructure and Transport announced that on October 8, it will hold a kickoff meeting for a joint crackdown on illegal subcontracting at the site office of Section 5 of the Pyeongtaek–Oseong double-track railway project near Osong Station.

This joint crackdown will involve the Ministry and the top 10 public institutions with the largest construction project orders, including Korea Land & Housing Corporation (LH), National Railroad Corporation, Korea Expressway Corporation, Korea Hydro & Nuclear Power, Korea Water Resources Corporation, Korea Rural Community Corporation, Korea Electric Power Corporation, Korea Gas Corporation, Seoul Housing & Communities Corporation, and Seoul Metro. The meeting will be presided over by Vice Minister Kim Itak.

The intensive inspection period will run from October 12 until the end of this year. Of all public institution sites, 275 locations have been selected for inspection, based on AI-driven analysis or reports that raise suspicions of illegal subcontracting. At least 130 personnel from the Ministry and public institutions will be deployed for these inspections.

An apartment construction site in Seoul city. Photo by Yonhap News Agency

To encourage reporting, a reward system will be linked to on-site inspections. Reports received from site personnel or third parties with knowledge of illegal subcontracting will be promptly verified, and immediate on-site inspections and swift enforcement will follow. In June of this year, the Ministry relaxed evidence submission requirements and lifted the reward cap. Rewards of up to 30% of fines may be paid.

During this inspection period, the Ministry has decided that if a company reports itself and takes corrective action within a set period, any administrative measures may be reduced by up to half. The Enforcement Decree of the Framework Act on the Construction Industry, which enables the reduction of administrative penalties, was amended last month and will take effect in January next year.

Vice Minister Kim Itak stated, "To root out illegal subcontracting on construction sites, we will activate reporting and crackdowns through reward payments, and actively apply the reduction system to companies that voluntarily correct violations. This will create a robust system focused on reporting, crackdowns, and voluntary correction to eradicate illegal subcontracting."

This content was produced with the assistance of AI translation services.