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Fair Transactions in Subcontracting Act — Article 12 (Prohibition of unfair requests for settlement of purchase price)

하도급거래 공정화에 관한 법률 제12조

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.

Where a prime contractor has had a subcontractor purchase goods, etc. necessary for the manufacturing, repair, construction, or service performance of subject matter, etc. from himself or herself, or use his or her equipment, etc., he or she shall not conduct an act falling under any of the following subparagraphs without good cause:

1. Having the subcontractor pay all or part of the purchase price or rent prior to the date of payment of subcontract price of the relevant subject matter, etc.;

2. Having the subcontractor pay the purchase price or rent on condition that is significantly unfavorable compared with that on which the prime contractor purchases or uses the goods, etc., or supplies the goods, etc. to a third party.[This Article Wholly Amended on Apr. 1, 2009]

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Korean original (law.go.kr) · Get articles as JSON via API

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