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Busan to Pilot “Construction Payment Electronic System – Electronic Card Integration Project” Starting in July

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The Busan Metropolitan City (Mayor Park Heong-joon) announced that it has been selected as the sole pilot municipality in the nation for the “Construction Payment Electronic System – Electronic Card Integration Project” and will officially launch the pilot program in July.

This initiative integrates electronic payment systems with electronic cards that record workers' attendance. Wage statements are created based on these records and then sent to the payment system, allowing for wage claims and direct payments.

○ Currently, construction projects initiated by affiliated agencies of the Ministry of Land, Infrastructure and Transport (MOLIT) already operate with this integrated system. With amendments to the Framework Act on the Construction Industry underway, the system is expected to become mandatory for all public construction projects managed by local governments once the law is revised.

○ In anticipation, MOLIT began recruiting pilot local governments in May 2025.

<Overview of Electronic Card & Payment System Integration>
∎ Electronic Card: Tracks construction daily workers’ site attendance for retirement fund contributions. Mandatory for public projects over KRW 100 million and private projects over KRW 5 billion since 2024 (Ministry of Employment and Labor).

• ●Evolution:

• ○Nov. 2020–Jun. 2022: Mandatory for public projects ≥ KRW 10 billion, private projects ≥ KRW 30 billion

• ○Jul. 2022–Dec. 2023: Lowered to public ≥ KRW 5 billion, private ≥ KRW 10 billion

∎ System Integration: Attendance data from the electronic card is used to create wage statements, which are sent to the electronic payment system for wage claim and disbursement

To proactively respond before the law is enforced nationwide, Busan is joining the pilot project to prevent wage arrears and enhance transparency in payment practices at construction sites.

○ Since 2019, the City has required all public project owners to use the Subcontractor Payment System (“Subcontract Keeper”) to prevent misappropriation or non-payment of construction funds.

Under the new pilot system, payments that were previously made in bulk to subcontractor labor accounts will now be processed based on electronic card attendance data, allowing for direct individual wage payments through the integrated platform.

○ This new method will allow for real-time tracking of worker attendance and wage status, improving safety management and resolving wage delay issues more effectively.

MOLIT and the Construction Workers’ Mutual Aid Association visited Busan for training, and from July, the City will begin applying the new system to its head office construction contracts.

○ On June 11, a working-level meeting was held with MOLIT and the Construction Workers’ Mutual Aid Association to discuss detailed plans and implementation methods. Manuals and individual training sessions were also provided to relevant staff.

○ During the pilot period, the City will receive ongoing consultation, monitor progress, and manage performance to ensure smooth transition and full-scale adoption in the future.

Kim Kyung-tae, Director General of the Planning & Coordination Office of Busan, stated, “By participating in this pilot project ahead of the legal mandate, Busan can respond swiftly and proactively.” He added, “We will maximize the prevention of wage non-payment by ensuring direct payments to construction workers and strengthen transparency and fairness in public procurement and construction fund management.”