Korean construction groups, lawmakers urge permanent joint-contracting system
In short
Construction industry associations and lawmakers called for expanding South Korea's main-contractor joint contracting system at a forum in Seoul on October 6. Participants discussed turning a temporary special measure into a standing system and writing its purpose, scope and structure into relevant laws. No government decision on the proposals was reported.
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Construction industry associations and opposition-party lawmakers called for expanding South Korea's main-contractor joint contracting system at a forum held on October 6 at the National Assembly Members' Office Building in Yeouido, Seoul, Asia Economy reported. The forum, co-hosted by the Korea Mechanical Construction Contractors Association, was organized to discuss ways to strengthen cooperation between general and specialty construction companies and establish fair trade order. [ 3 ]
According to Asia Economy, participants reviewed problems in how the system currently operates and discussed converting a temporary special measure into a standing system. Proposals also included specifying the system's purpose, target and composition in relevant laws. Jin Sang-gi, a senior research fellow at the Mechanical Facilities Industry Research Institute, presented on revitalizing joint contracting for cooperation in the construction industry, and Park Kwang-bae, a senior research fellow at the Korea Construction Policy Research Institute, presented on problems with multi-tier subcontracting and the expected effects of main-contractor joint contracting. [ 3 ]
A panel discussion followed, chaired by Jang Young-soo, president of the Korean Society of Mechanical Engineers' facilities division, with Kim Ki-yong, construction policy division head at the Ministry of Land, Infrastructure and Transport, Kim Young-hee, industry division head at the construction association, Park Geun-bok, policy division head at the specialty contractors association, Cho Hun-je, policy division head at the mechanical contractors association, lawyer Lee Chang-hyun of HyeMyung law firm and Choi Su-jung, a research fellow at the Korea SMEs and Startups Institute, taking part. Heo Yong-ju, chairman of the Korea Mechanical Construction Contractors Association, said that expanding the main-contractor joint contracting system is “an important institutional basis that promotes fairness and coexistence in the construction industry,” Asia Economy reported. [ 3 ]
The other two documents carried the same demand in their headlines. Newsis's headline said the system must be expanded to improve construction subcontracting, and Korea Economic Daily's headline said public main-contractor joint contracting runs at 7.8 cases a year and should be turned into a standing system. [ 1 , 2 ]
Why it matters
The forum is a push by construction industry associations and opposition-party lawmakers to change the rules on multi-tier subcontracting, which they describe as a problem for fair trade in the sector. The documents describe proposals and discussion only; any change would require legislation and government action, and none was announced.
Key facts
- A forum on improving the main-contractor joint contracting system was held on October 6 at the National Assembly Members' Office Building in Yeouido, Seoul. [ 3 ]
- The forum was co-hosted by the Korea Mechanical Construction Contractors Association, according to Asia Economy. [ 3 ]
- Attendees included the Democratic Party's Euljiro Committee, lawmakers Min Byung-duk, Kim Nam-geun, Lee Kang-il, Yeom Tae-young, Ahn Tae-jun and Song Jae-bong, and representatives of the Korea Specialty Contractors Association and the Korea Mechanical Construction Contractors Association. [ 3 ]
- Discussions covered problems in the current operation of the system and converting a temporary special measure into a standing system, and proposed defining the system's purpose, target and structure in relevant laws. [ 3 ]
- Jin Sang-gi of the Mechanical Facilities Industry Research Institute and Park Kwang-bae of the Korea Construction Policy Research Institute gave presentations. [ 3 ]
- Heo Yong-ju, chairman of the Korea Mechanical Construction Contractors Association, said expanding the system is an important institutional basis for promoting fairness and coexistence in the construction industry. [ 3 ]
- Newsis's headline said the system must be expanded to improve construction subcontracting. [ 1 ]
- Korea Economic Daily's headline said public main-contractor joint contracting runs at 7.8 cases a year and should be changed into a standing system. [ 2 ]
Confirmed by several sources
Still unclear
- Whether the government or the National Assembly will act on the proposals discussed at the forum. No document states a decision, timetable or government position on the proposals.
- The figure of 7.8 public main-contractor joint contracting cases per year. The number appears only in one outlet's headline, with no supporting detail in the documents.
- The full list of participants and any conclusions reached at the forum. Only one outlet, Asia Economy, reports the forum in detail; the other two documents provide headlines only.
What local media are saying
Timeline, local time
- Newsis publishes a headline saying the main-contractor joint contracting system must be expanded to improve construction subcontracting. [ 1 ]
- Korea Economic Daily publishes a headline citing 7.8 public main-contractor joint contracting cases a year and calling for the system to be made standing. [ 2 ]
- Asia Economy reports that the forum on improving the main-contractor joint contracting system was held that day at the National Assembly Members' Office Building in Yeouido, Seoul. [ 3 ]