The Fair Trade Commission announced on the 24th that it has decided to report Yujin Construction Industry and the company's representative to the prosecution for failing to comply with a subcontract payment order. Yujin Construction Industry is a construction company located in Wansan-gu, Jeonju, which recorded sales of 5.886 billion won in 2020.
According to the Fair Trade Commission, Yujin Construction Industry failed to pay 89 million won to a contractor related to the construction and interior work of the 'Sambong District Blocks 4-1, 4-2, 5, and 7' in 2022. As a result, the Fair Trade Commission issued a corrective order on July 2nd of last year, demanding that Yujin Construction Industry pay the unpaid amount and delayed interest.
Subsequently, the Fair Trade Commission sent three reminders on August 2nd, August 26th, and October 11th of last year; however, Yujin Construction Industry has still not complied with the corrective order.
In response, the Fair Trade Commission decided to report the company and its representative to the prosecution based on Articles 25 (corrective measures), 30 (penalties), 31 (joint penalties), and 32 (reported cases) of the Act on the Fairness of Subcontracting Transactions.
A Fair Trade Commission official stated, "There will be strict responses to businesses that evade compliance with the Fair Trade Commission’s corrective order despite failing to pay subcontracting fees to small contractors, leading to criminal penalties."