Seoul to inspect construction sites for unpaid wages ahead of Chuseok

The Seoul Metropolitan Government announced Wednesday that it will conduct a special inspection of construction sites ahead of the Chuseok holiday to prevent unpaid or delayed payments of construction fees, worker wages, and material and equipment costs. A dedicated inspection team will visit 10 vulnerable sites — those with frequent complaints or a large number of subcontractors — among city-commissioned construction projects from Monday through Friday next week.

The team will consist of 16 members, including 10 honorary subcontractor ombudsmen — lawyers, labor consultants and engineers — and six city officials. Inspectors will focus on verifying payment execution and compliance, the appropriateness of employment contracts, and construction equipment lease agreements to strengthen the practical effect of wage-arrears prevention. When disputes arise, the honorary ombudsmen will also facilitate resolution through legal counseling or mediation.

The inspection will also examine the issuance of construction equipment rental payment guarantees by site, the use of the subcontractor protection system, and the operation of the electronic workforce management system for construction workers, gathering broad feedback from the field. Based on the findings, the city plans to take action in accordance with relevant regulations — including corrective orders and business suspension — depending on the severity of violations.

In addition, the city will run a "concentrated reporting period for subcontract payment arrears" from Monday through Sept. 23. Reports can be submitted to the city's Subcontract Irregularities Reporting Center, and sites with multiple or repeat complaints will be subject to additional on-site mobile inspections.

The city currently operates the Subcontract Irregularities Reporting Center year-round to protect subcontractors' rights and resolve payment arrears. Over the past three years, the center has received and processed 595 complaints, recovering approximately 5.8 billion won ($4.23 million) in unpaid amounts.

Meanwhile, the city expanded the scope of direct wage payments for city-commissioned construction projects starting in April. As a result, indirect workers in quality and safety roles — including equipment signal operators and traffic controllers — who had faced a high risk of unpaid wages were added to the list of workers eligible for direct payment.

"We will continue to pay close attention to ensuring that subcontract payments, wages, and construction equipment rental fees are not left unpaid on Seoul's construction projects, and we will also work to improve the system to protect the rights of subcontractors and construction workers," said Moon Hyeok, head of the Seoul Metropolitan Government's audit committee.