Laws › Business, Investment & Tax
Fair Transactions in Subcontracting Act
하도급거래 공정화에 관한 법률
This English translation is based on the Korean text effective 2025-12-17. The Korean law has since been amended (current version effective 2026-10-02) — check the Korean original.
Articles
- Article 1 Purpose
- Article 2 Definitions
- Article 3 Issuance and retention of documents
- Article 3-2 Formulation, amendment, and use of standard subcontract
- Article 3-3 Entering into agreements by prime contractor and subcontractor
- Article 3-4 Prohibition against unfair special agreements
- Article 3-5 Disclosure of results of bidding for construction subcontracts
- Article 3-6 Selection of and support for exemplary enterprises adopting subcontract payment adjustment system
- Article 3-7 Designation of headquarters for supporting dissemination of subcontract payment adjustment system
- Article 4 Prohibition against fixing unreasonable subcontract payment
- Article 5 Prohibition of compelling purchase of goods
- Article 6 Payment in advance
- Article 7 Opening local letters of credit
- Article 8 Prohibition of unreasonable cancellation of entrustment
- Article 9 Criteria, method and time of inspection
- Article 10 Prohibition of unreasonable return of goods
- Article 11 Prohibition against reduction
- Article 12 Prohibition of unfair requests for settlement of purchase price
- Article 12-2 Prohibition of unfair requests for economic profits
- Article 12-3 Prohibition of request to provide technical data
- Article 13 Payment of subcontract payment
- Article 13-2 Performance guarantees for construction subcontracts and for payment of consideration
- Article 13-3 Disclosure of payment conditions of subcontract payment
- Article 14 Direct payment of subcontract payment
- Article 15 Payment of refund of customs duties
- Article 16 Adjustment of subcontract payment due to change in design
- Article 16-2 Adjustment of subcontract payment due to fluctuations in supply costs
- Article 17 Prohibition against unreasonable payment in substitutes
- Article 18 Prohibition of unreasonable intervention in management
- Article 19 Prohibition on retaliatory measures
- Article 20 Prohibition of evasion of this Act
- Article 21 Matters to be observed by subcontractors
- Article 22 Reporting on violations
- Article 22-2 Documentary fact-finding investigations on subcontract transactions
- Article 23 Limitation on transactions subject to investigation
- Article 24 Establishment and composition of subcontract dispute mediation councils
- Article 24-2 Exclusion of, challenge to, or recusal by member
- Article 24-3 Meetings of councils
- Article 24-4 Requests for dispute mediation and other related matters
- Article 24-5 Mediation
- Article 24-6 Preparation of proposal of mediation and validity thereof
- Article 24-7 Operational rules of councils
- Article 24-8 Relationship with litigation
- Article 24-9 Resolution of consent
- Article 24-10 Procedure for and revocation of the resolution of consent
- Article 24-11 Charges for compelling compliance
- Article 25 Corrective measures
- Article 25-2 Deposit
- Article 25-3 Penalty surcharges
- Article 25-4 Publication of lists of habitual violators
- Article 25-5 Corrective recommendation
- Article 26 Cooperation from heads of relevant administrative agencies
- Article 27 Monopoly Regulation and Fair Trade Act to be applied mutatis mutandis
- Article 28 Relationship to the monopoly regulation and fair trade act
- Article 29 Penalty provisions
- Article 30 Penalty provisions
- Article 30-2 Administrative fines
- Article 31 Joint penalty provisions
- Article 32 Criminal charge
- Article 33 Comparative negligence
- Article 34 Relationship to other statutes
- Article 34-2 Claim for injunctions
- Article 35 Liability for losses
- Article 35-2 Submission of data
- Article 35-3 Confidentiality orders
- Article 35-4 Revocation of confidentiality orders
- Article 35-5 Notification of request for perusal of litigation records
- Article 35-6 Estimation of damages
- Article 36 Regarding as public officials for purposes of applying penalty provisions