Penalties for illegal subcontracting, a chronic illicit practice at construction sites, will be sharply raised, while rewards for whistleblowers will also increase significantly.
The Ministry of Land, Infrastructure and Transport (MOLIT) said a partial amendment to the enforcement decree of the Framework Act on the Construction Industry was approved at a Cabinet meeting Tuesday. The amendment takes effect immediately upon promulgation.
The amendment centers on two changes: substantially expanding whistleblower rewards for illegal subcontracting, and raising the level of administrative penalties to the maximum legal limit.
Previously, rewards for reporting unfair practices were paid within a cap of 2 million won, and whistleblowers had to submit evidence themselves. Going forward, the payment cap will be abolished, and whistleblowers will be able to receive up to 30 percent of the penalty surcharge imposed on the unfair practice as a reward. In a past case where a penalty surcharge of 189 million won was imposed, the whistleblower received only 2 million won, but under the amended standards, the reward could reach 56.7 million won.
The burden of submitting evidence will also be eased. Taking into account the reality that it is difficult to secure evidence proving illegal acts, the amendment allows whistleblowers to receive rewards if the violation is confirmed during the investigation or crackdown process based solely on the whistleblower's specific testimony and...
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