Group Halted for Illegal Nationwide Safety Contracting

Illegal Subcontracting and Unregistered Safety Services Exposed

A group of individuals involved in illegal subcontracting and unregistered safety diagnosis services for major facilities across the country has been arrested by the police. This operation highlights a significant breach of regulations and poses serious risks to public safety.

The Criminal Investigation Squad of the Metropolitan Investigation Unit under the Seoul Metropolitan Police Agency announced on the 19th that they have apprehended 40 representatives of companies, including those who led illegal subcontracting and six who performed safety diagnosis services without registration. These individuals are being charged with violations of the Facility Safety Act and other related offenses. Among the arrested, 34 were company representatives or related parties who oversaw the illegal subcontracting, while the remaining six were found to have conducted safety diagnosis services without proper registration.

According to the police, from May 2023 to March 2025, the group illegally handled 115 projects commissioned by local governments and public institutions nationwide. The original contracting companies transferred these projects through subcontracting without informing the clients. Some of the subcontractors further passed the work to unregistered companies, which had not been registered as safety diagnosis institutions. To avoid detection, the group used tactics such as temporarily listing subcontractor employees on the original contracting company’s staff roster or issuing fake tax invoices unrelated to the actual project work.

The original contracting companies set up branch offices across the country to gain favorable conditions in competitive bidding. By doing so, they won numerous regional projects and then handed over the actual work to subcontractors to make a profit. The subcontracting fees were reportedly paid at 60–70% of the usual project cost. Police believe that within a structure where a few large original contracting companies effectively monopolized nationwide projects, illegal subcontracting at low prices to companies with poor performance records was common. This practice became necessary as it became increasingly difficult for these companies to perform the work with their own staff alone.

Police stated, “We plan to strengthen management and supervision in cooperation with relevant agencies for project areas directly related to public safety,” adding, “We will severely punish any illegal activities in accordance with investigative principles once detected.”

The Facility Safety Act was enacted in 1994 following the collapse of the Seongsu Bridge. It mandates that only registered companies with specific manpower and equipment can conduct safety inspections to prevent substandard diagnoses. The law also includes provisions that will be strengthened starting next December, reflecting the growing concern over the integrity of safety-related services.

Key Points of the Case

• The group operated illegally by subcontracting safety diagnosis and design services without proper registration.
• Over 115 projects were handled between May 2023 and March 2025, involving local governments and public institutions.
• Original contracting companies used branch offices to secure contracts and then subcontracted work to unregistered firms.
• Tactics such as fake tax invoices and temporary staff listings were used to evade inspections.
• The case underscores the need for stricter oversight in public safety-related projects.

This arrest serves as a warning to companies engaging in similar illegal practices. With the upcoming strengthening of penalties under the Facility Safety Act, authorities are expected to take a more stringent approach to ensure compliance and protect public safety.