South Korea to crack down on illegal subcontracting at 75 construction sites

The Ministry of Land, Infrastructure and Transport is launching a concentrated crackdown on illegal subcontracting and unpaid wages at 75 private construction sites in the Gyeongsang region. The inspection period runs from November 19 to December 13.

This initiative follows a previous inspection of public sector sites and a May crackdown in the Seoul metropolitan area. The government is deploying 15 personnel from the Ministry and five regional land management offices, working alongside the Korea Construction Equipment Association, to monitor compliance.

To encourage reporting, the government has updated its reward system. Following an amendment to the Framework Act on the Construction Industry, reporting rewards are no longer capped at 2 million won but can now be up to 30% of the imposed fine. The Ministry aims to use these rewards to link reports directly to field inspections and enforcement actions.