(1) Where adjustment of subcontract price is inevitable in any of the following cases after a subcontractor is entrusted with manufacturing, etc., the subcontractor may request the prime contractor to adjust subcontract price: <Amended on Jan. 16, 2018; Nov. 26, 2019; Jan. 11, 2022>
1. Where the supply costs of subject matter, etc. have changed;
2. Where the timing for the delivery, etc. of the subject matter, etc. is delayed due to a cause not attributable to the subcontractor, causing any change to expenses other than the supply costs, such as management expenses.
3. Where a contract is concluded whereby the subcontract price decreases in stages as the contract period elapses in anticipation of a decrease in the supply cost or other costs of the subject matter, but the supply cost or other costs do not decrease or the rate of decrease is lower than the reduction rate of the subcontract price for reasons not attributable to the subcontractor, such as the prime contractor reducing the quantity or scale of the subject matter.
(2) Where the supply cost of the subject matter, etc. has changed, a small and medium enterprise cooperative defined in Article 3 (1) 1 or 2 of the Small and Medium Enterprise Cooperatives Act (hereinafter referred to as "cooperative") may negotiate with a prime contractor prescribed by Presidential Decree on the adjustment of the subcontract price upon receipt of a request therefor from its member subcontractor; provided, this shall not apply if the prime contractor and the subcontractor are members of the same cooperative. <Amended on May 28, 2013; Jan. 16, 2018; Jan. 11, 2022; Jul. 18, 2023>
(3) A cooperative shall request a prime contractor to adjust the subcontract price within 20 days from the receipt of a request under the main clause of paragraph (2); provided, this shall not apply if the cooperative requests negotiations for adjustment under paragraph (4) within the relevant period to the Korea Federation of Small and Medium Business (hereinafter referred to as the "Central Federation") under Article 3 (1) 4 of the Small and Medium Enterprise Cooperatives Act. <Amended on May 28, 2013; Mar. 29, 2016; Jan. 11, 2022>
(4) If it is deemed necessary before or after requesting the prime contractor to adjust the subcontract price under the main clause of paragraph (3), the cooperative may, with the consent of the subcontractor, request the Central Federation to negotiate with the prime contractor for the adjustment of the subcontract price. <Added on Jan. 11, 2022>
(5) The Central Federation shall request the prime contractor to adjust the subcontract price within 15 days from the receipt of an application under paragraph (4). <Added on Jan. 11, 2022>
(6) Where a subcontractor who has requested adjustment of subcontract price under paragraph (1) requests negotiation for adjustment under paragraph (2), the request under paragraph (1) shall be deemed withdrawn and where the cooperative that has requested adjustment of subcontract price under the main clause of paragraph (3) requests negotiation for adjustment under paragraph (4), the request under the main clause of paragraph (3) shall be deemed withdrawn. <Added on Jan. 11, 2022>
(7) Where negotiations for adjustment under paragraph (1), the main clause of paragraph (3), or paragraph (5) are completed, the subcontractor, cooperative, or Central Federation may not request adjustment under paragraphs (1) through (5) for the same reason, unless there is a change in circumstances. <Amended on May 28, 2013; Jan. 11, 2022>
(8) A cooperative or the Central Federation that has received a request under paragraph (2) or (4) shall not engage in any act that unreasonably restricts competition or unreasonably restricts the business operations or activities of a business entity, such as passing a resolution to suspend delivery. <Amended on May 28, 2013; Jan. 11, 2022>
(9) Matters necessary for the request by subcontractors and the procedures and methods for negotiations by the cooperative under the main clause of paragraph (2) and the main clause of paragraph (3), the request by the cooperative and the procedures and methods for negotiations by the Central Federation under paragraphs (4) and (5), and other matters shall be prescribed by Presidential Decree. <Amended on Jan. 11, 2022>
(10) A prime contractor shall, within 10 days from the date a request is made under paragraph (1), the main clause of paragraph (3), or paragraph (5), initiate negotiations for the adjustment of subcontract price with the subcontractor, cooperative, or Central Federation that has requested such adjustment and shall not refuse or neglect the negotiations without good cause. <Added on May 28, 2013; Jan. 11, 2022>
(11) A prime contractor or subcontractor (including the cooperative or the Central Federation in cases of negotiation for adjustment under the main clause of paragraph (3) or paragraph (5); hereafter in this paragraph, the same shall apply) may apply for mediation to the subcontract dispute mediation council under Article 24 in any of the following cases; provided, the cooperative or the Central Federation may not apply for mediation to the subcontract dispute mediation council established in the Central Federation: <Added on May 28, 2013; Jan. 11, 2022>
1. Where a prime contractor fails to initiate negotiations for the adjustment of subcontract price even after 10 days have elapsed from the date a request is made under paragraph (1), the main clause of paragraph (3), or paragraph (5);
2. Where an agreement on the adjustment of the subcontract price is not reached within 30 days from the date a request is made under paragraph (1), the main clause of paragraph (3), or paragraph (5);
3. Where it is obvious that an agreement will not be reached for reasons prescribed by Presidential Decree, such as where a prime contractor or subcontractor expresses intent to suspend negotiations after the initiation of negotiations in response to a request made under paragraph (1), the main clause of paragraph (3), or paragraph (5).[This Article Added on Apr. 1, 2009][Title Amended on Jan. 16, 2018; Nov. 26, 2019]