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Fair Transactions in Subcontracting Act — Article 35 (Liability for losses)

하도급거래 공정화에 관한 법률 제35조

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) A prime contractor shall be liable to compensate a person who sustains an injury or loss as a consequence of a prime contractor’s violation of any of the provisions of this Act for the injury or loss inflicted upon the person; provided, this shall not apply where the prime contractor proves that such injury or loss has not been caused by an intentional act or negligence of the prime contractor. <Amended on May 28, 2013>

(2) If a prime contractor inflicts an injury or loss upon a person by violating Article 4, 8 (1), 10, 11 (1) or (2), 12-3 (4) and 19, the prime contractor shall be liable to compensate the injury or loss inflicted upon the person within the scope prescribed in the following subparagraphs; provided, this shall not apply where the prime contractor proves the lack of intent or negligence on the part of the prime contractor. <Amended on May 28, 2013; Jan. 16, 2018; Aug. 17, 2021; Feb. 27, 2024>

1. Where Article 4, 8 (1), 10, 11 (1) and (2), and 19 have been violated: Not more than 3 times the amount of damage;

2. Where Article 12-3 (4) is violated: Not more than 5 times the amount of damage.

(3) A court shall take the following matters into consideration when it determines the amount of compensation in accordance with paragraph (2): <Added on May 28, 2013>

1. The degree of awareness of intention or likelihood of occurrence of damage;

2. The severity of the damage inflicted upon a subcontractor and third parties by the violation;

3. Economic benefit that the prime contractor acquired by the violation;

4. Fines and penalty surcharges against the offense;

5. The duration, frequency, etc. of relevant violations;

6. The prime contractor’s financial standing;

7. The degree of the prime contractor’s efforts to remedy injuries and losses.

(4) Where a claim for damages is filed under paragraph (1) or (2), Article 110 and 115 of the Monopoly Regulation and Fair Trade Act shall apply mutatis mutandis. <Amended on May 28, 2013; Dec. 29, 2020>[This Article Added on Mar. 29, 2011]

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