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Fair Transactions in Subcontracting Act — Article 3-4 (Prohibition against unfair special agreements)

하도급거래 공정화에 관한 법률 제3조의4

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.

(1) No prime contractor shall attach terms and conditions that unfairly violate or restrict a subcontractor’s interests to a contract (hereinafter referred to as "unfair special agreement").

(2) Any of the following agreements shall be deemed an unfair special agreement:

1. An agreement under which a prime contractor requires a subcontractor to bear expenses incurred when a prime contractor requires the subcontractor to do works not stated in a document prescribed in Article 3 (1);

2. An agreement under which a prime contractor requires a subcontractor to bear expenses incurred in relation to the settlement of civil complaints, industrial accidents, etc.;

3. An agreement under which a prime contractor requires a subcontractor to bear expenses incurred when a prime contractor requires the subcontractor to perform works not specified in the relevant tender documents;

4. Agreements specified by Presidential Decree, such as an agreement that restricts a subcontractor’s interests, which shall be protected by this Act, or that shifts an obligation imposed upon a prime contractor to a subcontractor.

(3) An unfair special agreement under paragraph (2) 1 through 3 shall be null and void to the extent of the relevant part; in the case of subparagraph 4, such agreement shall be null and void to the extent of that part if it is deemed to be significantly unfair to either party. <Added on Apr. 1, 2025>[This Article Added on Aug. 13, 2013]

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