Sehwa Academy, the school foundation that operates Sehwa High School, was ordered to take corrective action by the Korea Fair Trade Commission for violating the Fair Transactions in Subcontracting Act by failing to pay 26.4 million won to a construction subcontractor.
According to the Korea Fair Trade Commission (FTC) on the 3rd, Sehwa Academy was found to have withheld a 26.4 million won balance from subcontractor A for a project ordered in 2021, citing construction defects. However, the defects were said to have been caused by another subcontractor, not A.
The Korea Fair Trade Commission (FTC) determined that this conduct violated Article 14, Paragraph 1 of the Fair Transactions in Subcontracting Act. The provision says that when corporations agree to pay a subcontractor directly, they are obligated to make the payment. Sehwa Academy, the primary contractor, and A agreed to "direct payment of subcontract price to A," but it was found not to have honored the agreement.