(1) Where a ground falling under any of the following subparagraphs occurs, the person placing an order shall pay the subcontract price corresponding to the completed portion of manufacturing, repair, construction, or service performance directly to the subcontractor: <Amended on May 28, 2014>
1. When the subcontractor has requested direct payment of the subcontract price because the prime contractor’s payment has been suspended, the prime contractor is bankrupt, or other similar reasons exist, or because the prime contractor has become unable to pay the subcontract price due to revocation of permission, authorization, license, registration, etc. relating to the business;
2. When agreement has been made among the person placing an order, prime contractor, and subcontractor that the person placing an order shall pay the subcontract price directly to the subcontractor;
3. When the subcontractor has requested direct payment of the subcontract price where the prime contractor has failed to pay to the relevant subcontractor two or more installments of the subcontract price to be paid by the prime contractor as prescribed in Article 13 (1) or (3);
4. When the subcontractor has requested direct payment of the subcontract price where the prime contractor has failed to perform his or her obligation to guarantee the payment of subcontract price as prescribed in Article 13-2 (1) or (2).
(2) Where a ground prescribed in paragraph (1) occurs, the obligation of the person placing an order to pay consideration to the prime contractor and the obligation of the prime contractor to pay the subcontract price to the subcontract shall be deemed to have extinguished within such limit.
(3) Where a prime contractor requests suspension of direct payment of the relevant subcontract price by appending documents evidencing the fact that the subcontractor delays paying wages, price of materials, etc. in connection with the relevant subcontract (excluding where the delay in payment has occurred due to causes attributable to the prime contractor), the person placing an order shall not pay the subcontract price directly, notwithstanding paragraph (1). <Amended on Apr. 30, 2019>
(4) When the person placing an order pays the subcontract price directly to the relevant subcontractor as prescribed in paragraph (1), he or she shall pay it minus the subcontract price that has already been paid by the person placing an order to the prime contractor.
(5) Where confirmation, etc. of a completed portion is necessary for the subcontractor to receive the subcontract price directly from the person placing an order as prescribed in paragraph (1), the prime contractor shall take necessary measures without delay.
(6) Matters necessary for the methods, procedures, etc. for payment where the subcontract price is paid directly as prescribed in paragraph (1) shall be prescribed by Presidential Decree.[This Article Wholly Amended on Apr. 1, 2009]