POSCO ICT Co. and Kangrim Insulation Co. are prohibited from launching bids due to exceeding cumulative subcontracting law penalty points.
According to the Fair Trade Commission (FTC) on Feb. 25, the two companies recorded a 6 cumulative point each after violating the subcontracting law in the past three years. Under the subcontracting law, those who scored 5 points or more are restricted from participating in bids.
By the subcontracting law and its enforcement ordinance, which have been revised in 2016, the FTC is required to report companies that have exceeded five penalty points over three years before the date that the FTC implemented corrective measures to heads of related administrative agencies in order to restrict them from making a bid.
POSCO ICT received 2.5 penalty points each from unreasonable price for subcontracts, unreasonable special contracts and unpaid payments and delay charges in April last year.
The FTC plans to ask 43 central administrative agencies, such as the Public Procurement Service and the Ministry of National Defense, and 15 metropolitan local governments, including Seoul Metropolitan City and Busan Metropolitan City, to limit POSCO ICT and Kangrim Insulation from entering any bids.