The Korea Fair Trade Commission said on the 27th that it imposed a correction order on general contractor Line Construction on suspicion of violating the obligation to pay delay interest. Line Construction is a builder that owns apartment brands such as Easy The One.
According to a Korea Fair Trade Commission (FTC) investigation, Line Construction received deliverables from 64 subcontractors from Oct. 1, 2019, to July 2, 2024, but paid the price after 60 days had passed. The Fair Transactions in Subcontracting Act stipulates that if payment is made after 60 days from the date of receiving the deliverables, delay interest must be paid by applying an annual rate of 15.5% to the excess period. However, Line Construction did not comply, and the unpaid delay interest amounts to 1.162 billion won.
Accordingly, the Korea Fair Trade Commission (FTC) imposed a correction order on Line Construction. However, it did not impose a penalty surcharge, considering that Line Construction voluntarily paid the entire unpaid delay interest after the FTC investigation began.
An official at the Korea Fair Trade Commission (FTC) said, "Line Construction is one of the companies that last week entered into a partnership for mutual growth as the FTC seeks to root out unfair practices in the construction industry," adding, "We will continue working to prevent legal violations by the top 50 construction companies that have signed mutual growth agreements."