(1) The Fair Trade Commission may impose upon any of the following person placing an order, prime contractor, and subcontractor a penalty surcharge not exceeding the subcontract price for the manufacturing, etc. entrusted to the subcontractor or a penalty surcharge not exceeding double the subcontract price for the manufacturing, etc. entrusted by the person placing the order or prime contractor: <Amended on Jan. 25, 2010; Mar. 29, 2011; May 28, 2013; Aug. 13, 2013; Apr. 30, 2019; Jan. 11, 2022; Jul. 18, 2023; Apr. 1, 2025>
1. A prime contractor who violates Article 3 (1), (2) (excluding subparagraph 3), (6), or (7);
2. A prime contractor who fails to retain documents in violation of Article 3 (12), or a prime contractor or subcontractor who prepares and issues false documents concerning subcontract transactions;
3. A prime contractor who violates any provision of Articles 3-4, 4 through 12, 12-2, 12-3, 13 and 13-2;
4. A person placing an order, who violates Article 14 (1) and (3);
5. A prime contractor who violates Article 14 (5);
6. A prime contractor who violates any provision of Article 15, 16, 16-2 (10), and 17 through 20.
(2) Where deeming it difficult for a person subject a penalty surcharge in excess of the amount prescribed by Presidential Decree to pay the full amount of the penalty surcharge at once for any of the following reasons, the Fair Trade Commission may delay the payment deadline or have it paid in installments. In such cases, collateral may be required as necessary: <Added on Jan. 11, 2022>
1. If the person obligated to pay a penalty surcharge sustained a serious economic loss due to a disaster, theft, or other similar event;
2. If the business of the person obligated to pay a penalty surcharge is in a critical crisis due to the deterioration of business conditions;
3. If it is anticipated that he or she is likely to face severe hardship in his or her financial circumstances when the penalty surcharge should be paid in lump sum;
4. In other cases equivalent to those listed in subparagraphs 1 through 3.
(3) Where the Fair Trade Commission intends to delay the payment deadline for penalty surcharges or to allow payment in installments under paragraph (2), it shall consider the matters prescribed by Presidential Decree with respect to the following: <Added on Jan. 11, 2022>
1. Net loss for the relevant term;
2. Debt ratio;
3. Other matters necessary for checking financial positions.
(4) Article 102, 103 (excluding paragraph (1)) and Article 104 through 107 of the Monopoly Regulation and Fair Trade Act shall apply mutatis mutandis to the penalty surcharge under paragraph (1). <Amended on Dec. 29, 2020; Jan. 11, 2022>[This Article Wholly Amended on Apr. 1, 2009]