Resources Good Practices South Korea, Seul

Anti-Corruption Clean Construction System

Intervention Mechanism

A construction information transparency system adopted in Seul combining digital payment monitoring, project management systems, and public disclosure tools to increase accountability across the construction lifecycle.

Initiative Summary

The initiative was developed through collaboration between government agencies, private technology providers, banks, CSOs, and labour unions, and integrated with existing public financial and procurement systems. The system enables stakeholders to monitor project information in real time. A core feature was the introduction of a subcontractor and worker payment mechanism that allowed online verification of whether payments had been made, helping address widespread issues of delayed or unpaid wages affecting subcontractors and construction workers.

Practice Lesson

This initiative demonstrates how transparency in project execution can be effectively implemented. The system contributed to construction budget savings of nearly 10% and improvements in work efficiency of around 30%. Through the subcontractor payment system, subcontractors and construction workers were more likely to receive timely payments, helping reduce supply chain financing challenges and risks of worker exploitation and abuse.

Reference

Organisation for Economic Co-operation and Development. (2011). Anti-corruption clean construction system (Korea). OECD Observatory of Public Sector Innovation. Available from: https://oecd-opsi.org/wp-content/uploads/2019/07/Anti-Corruption-Clean-Construction-System_Korea_2011.pdf