Samsung C&T's construction site of the Banpo Raemian One Bailey apartment complex in Seoul is seen in this August 2021 file photo. Newsis

By Park Jae-hyuk

Subcontractors specializing in framework construction are poised to suspend their work at some 60 sites in the greater Seoul area starting Monday, to urge domestic builders to be more cooperative in holding talks over a 20-percent increase in payments for their work, according to industry officials, Sunday.

Eleven Daewoo E&C construction sites, four at GS E&C and two at Samsung C&T face suspension.

In particular, large projects, such as Samsung C&T's construction of Banpo Raemian One Bailey apartment complex, HDC Hyundai Development Company's Hyundai Elevator Chungju factory and Shinsegae E&C's Starfield Suwon shopping mall, are subject to the potential strike.

Hyundai E&C managed to avoid the suspension of framework construction at its sites. The builder has been reportedly in talks with subcontracted framework constructors since they threatened to halt their work in April.

"Soaring raw material prices and labor shortages following the COVID-19 pandemic outbreak have made it difficult for us to do our work without adjusting the contracted prices," a representative of framework builders in the greater Seoul area said. "Since last November, we have asked builders to raise payments for our work."

In February, they officially made the request through a letter sent to the nation's top 100 builders.

Some of them suspended their work for a day in March at around 30 construction sites nationwide, saying that managers of those sites had refused to accept their request. Framework constructors in the southwestern part of the country also halted their work in April.

Last month, framework constructors in Busan, Ulsan and South Gyeongsang Province temporarily stopped their work.

"We will take every possible measure to prevent the suspension of our construction works," said a spokesperson at one of the major builders.

Domestic builders have already suffered losses from delays in their construction projects, because of a nationwide cargo truckers' strike in June and a three-day strike by drivers of concrete mixer trucks earlier this month. The Banpo Raemian One Bailey project, for example, faced a setback for a week, when unionized cargo truckers went on strike.

If the suspension of framework construction drags on, the builders could face additional losses.

Some industry experts warned that builders could shift the rising costs onto consumers.

"The conflict will not be resolved in the short term, because it is especially difficult for small and medium-sized builders to accept the requests of their subcontractors," said Lee Eun-hyung, a researcher at the Korea Research Institute for Construction Policy.