[Background]

A. Strengthening Sanctions for Illegal Subcontracting: The Framework Act on the Construction Industry (Articles 19-3 and 82) allows for business suspension, fines (surcharges), and restriction on subcontract participation for violations of illegal subcontracting regulations. However, the maximum penalty levels specified in the current Enforcement Decree are lower than the maximum legal limits defined in the Act. The amendment aims to strengthen these penalties to the maximum level allowed by law.

B. Revitalizing the Whistleblower Reward System: Pursuant to Article 38-4 of the Framework Act on the Construction Industry, the Minister of Land, Infrastructure and Transport is currently able to reward those who report unfair practices at construction sites. The amendment aims to revitalize this system by increasing the maximum reward amount up to 10 million KRW and allowing rewards to be paid to the original whistleblower who significantly contributes to proving unfair practices, even if they did not submit physical evidence.

C. Establishing Legal Basis for Publicizing Chronic Wage Delinquency: Pursuant to Article 86-4 of the Framework Act on the Construction Industry, lists of chronic wage-delinquent construction businesses are prepared and publicly announced after deliberation by a committee to minimize damages from unpaid construction fees. However, a legal basis for some detailed procedures is currently lacking. Since the public announcement of such lists relates to the rights and interests of construction businesses, it is necessary to manage these details by establishing internal guidelines as an administrative rule.

[Main Points]

A. Strengthening Administrative Penalties for Illegal Subcontracting (Amendment to Enforcement Decree Attached Tables 3-2 and 6):

Strengthen the level of administrative penalties for illegal subcontracting to the maximum level within the legal limits stipulated by the Act.

B. Expanding Whistleblower Reward System (Amendment to Enforcement Decree Article 34-9, Paragraphs 1 and 2):

Increase the maximum reward amount for reporting unfair practices up to 10 million KRW.

Improve the system to allow the payment of rewards to the original whistleblower who significantly contributes to proving unfair practices, even without the submission of physical evidence.

C. Establishing Legal Basis for Publicizing Chronic Delinquent Contractors (New establishment of Enforcement Decree Article 82-4, Paragraph 3):

Establish a legal basis for stipulating the procedures related to the public announcement of chronic wage-delinquent construction businesses as an administrative rule, recognizing that this duty relates to the rights and interests of construction businesses.