ENFORCEMENT DECREE OF THE FAIR TRANSACTIONS IN SUBCONTRACTING ACT
Wholly Amended by Presidential Decree No. 22297, Jul. 21, 2010
Amended by Presidential Decree No. 22455, Oct. 18, 2010
Presidential Decree No. 22746, Mar. 29, 2011
Presidential Decree No. 22989, jun. 27, 2011
Presidential Decree No. 23267, Oct. 28, 2011
Presidential Decree No. 23282, Nov. 1, 2011
Presidential Decree No. 23864, jun. 19, 2012
Presidential Decree No. 24436, Mar. 23, 2013
Presidential Decree No. 24673, Jul. 22, 2013
Presidential Decree No. 24697, Aug. 27, 2013
Presidential Decree No. 24883, Nov. 27, 2013
Presidential Decree No. 25050, Dec. 30, 2013
Presidential Decree No. 25174, Feb. 11, 2014
Presidential Decree No. 25495, Jul. 21, 2014
Presidential Decree No. 25840, Dec. 9, 2014
Presidential Decree No. 26369, jun. 30, 2015
Presidential Decree No. 26438, Jul. 24, 2015
Presidential Decree No. 26933, Jan. 22, 2016
Presidential Decree No. 27115, Apr. 29, 2016
Presidential Decree No. 27367, Jul. 19, 2016
Presidential Decree No. 27444, Aug. 11, 2016
Presidential Decree No. 27702, Dec. 27, 2016
Presidential Decree No. 27751, Dec. 30, 2016
Presidential Decree No. 28353, Sep. 29, 2017
Presidential Decree No. 28471, Dec. 12, 2017
Presidential Decree No. 28848, Apr. 30, 2018
Presidential Decree No. 29042, Jul. 10, 2018
Presidential Decree No. 29238, Oct. 16, 2018
Presidential Decree No. 29972, Jul. 9, 2019
Presidential Decree No. 30509, Mar. 3, 2020
Presidential Decree No. 30606, Apr. 7, 2020
Presidential Decree No. 31222, Dec. 8, 2020
Presidential Decree No. 31380, Jan. 5, 2021
Presidential Decree No. 31393, Jan. 12, 2021
Presidential Decree No. 32274, Dec. 28, 2021
Presidential Decree No. 32443, Feb. 15, 2022
Presidential Decree No. 32528, Mar. 8, 2022
Presidential Decree No. 32798, Jul. 11, 2022
Presidential Decree No. 33202, Jan. 3, 2023
Presidential Decree No. 33770, Sep. 26, 2023
| Article 2 (Scope of Small and Medium Entrepreneurs) |
| (1) | Annual sales under the main clause of Article 2 (2) 2 of the Fair Transactions in Subcontracting Act (hereinafter referred to as the "Act") shall be sales indicated in the income statement for the business year immediately preceding the business year in which a subcontract is concluded: Provided, That if the business commenced in the immediately preceding business year, it means the annual equivalent of the sales for that year, and if the business commenced in the same year as the subcontract is concluded, it means the annual equivalent of the sales accumulated from the starting date of the business until the day on which the subcontract is concluded. |
| (2) | The total amount of assets under the main clause of Article 2 (2) 2 of the Act shall be total assets indicated in the statement of financial position as of the last day of the business year immediately preceding the business year in which a subcontract is concluded: Provided, That if the business commenced in the same business year as the contract is concluded, it means the total assets indicated in the statement of financial position as of the date on which the business commenced. <Amended on Jan. 5, 2021; Jan. 12, 2020> |
| (3) | Deleted. <Jan. 22, 2016> |
| (4) | "Small or medium business entrepreneurs whose annual sales are equal to the amount prescribed by Presidential Decree" in the proviso of Article 2 (2) 2 of the Act means any of the followings: <Amended on Jan. 12, 2021> |
| 1. | In cases of entrustment with manufacturing and repair: Any small and medium business entrepreneur whose annual sales are below three billion won; |
| 2. | In cases of entrustment with construction: Any small and medium entrepreneur whose amount of appraised construction capacity is below 4.5 billion won; |
| 3. | In cases of entrustment with service: Any small and medium entrepreneur whose annual sales are below one billion won. |
| (5) | "Goods prescribed by Presidential Decree" in Article 2 (7) of the Act means ready-mixed concrete; and "regions, including a Special Metropolitan City and Metropolitan City prescribed by Presidential Decree" means Daegu Metropolitan City, Gwangju Metropolitan City, Daejeon Metropolitan City, Sejong Metropolitan Autonomous City, Gangwon-do, Chungcheongbuk-do, Chongchenongnam-do, Jeollabuk-do, Jeollanam-do, Gyeongsangbuk-do, Gyeongsangnam-do, and Jeju Special Self-Governing Province, in whichever a subcontractor’s place of business is situated. <Amended on Jul. 22, 2013> |
| (6) | "Construction work prescribed by Presidential Decree" in the provisions, with the exception of the subparagraphs, of Article 2 (9) of the Act means any of the following construction works: |
| (7) | "Business entities prescribed by Presidential Decree" in Article 2 (9) 5 of the Act means any of the following business entities: <Amended on Oct. 28, 2011; Jul. 24, 2015; Aug. 11, 2016> |
| (8) | "Data prescribed by Presidential Decree" in Article 2 (15) of the Act means any of the following: <Amended on Dec. 27, 2016> |
| 1. | Data related to intellectual property rights, such as patent rights, utility model rights, design rights, and copyrights; |
| 2. | Data which are technically useful and have an independent economic value for the production and business activities of subcontractors, such as research data for construction work, development of products, etc., and research and development reports. |
| Article 3 (Matters to Be Stated in Documents) |
| 1. | The date of entrustment and the details of the task entrusted to the subcontractor (hereinafter referred to as "subject matter, etc."); |
| 2. | Time and place of the delivery, transfer, or provision of the subject matter, etc. to the prime contractor; |
| 3. | Method and time of the inspection of the subject matter, etc.; |
| 4. | Subcontract consideration (including advance payment, progress payment, and adjusted amount where the subcontract consideration is adjusted pursuant to Article 16 of the Act: hereinafter the same shall apply) and method and time of the payment thereof; |
| 5. | Where a prime contractor intends to provide a subcontractor with raw materials, etc. necessary to manufacture, repair, construct, or provide services for, the subject matter, etc., the names, quantity, date of supply, and price of such raw materials, etc. and the method and date of payment of the price. |
| 1. | Title of the subject matter, etc. to which the subcontract payment is to be linked; |
| 2. | Major raw materials of the subject matter, etc. to which the subcontract payment is to be linked; |
| 3. | Conditions for adjusting the linkage to the subcontract payment; |
| 4. | Standard price indexes of major raw materials; |
| 5. | The formula for the linkage to the subcontract payment; |
| 6. | Base point in time and comparative point in time for the calculation of the fluctuation rate of the prices of major raw materials; |
| 7. | Date of adjustment of the linkage to the subcontract payment, frequency of adjustment, and date of reflection of the adjusted amount of payment. |
| (3) | "Period prescribed by Presidential Decree" in Article 3 (4) 2 of the Act means 90 days: Provided, That if such period is otherwise determined and publicly notified by the Fair Trade Commission in consideration of the characteristics of transactions, such as trade practices, it shall refer to the period so determined. |
| (4) | "Amount prescribed by Presidential Decree" in Article 3 (4) 3 of the Act means 100 million won: Provided, That if such amount is otherwise determined and publicly notified by the Fair Trade Commission in consideration of the characteristics of transactions, such as trade practices, it shall refer to the amount so determined. |
[This Article Wholly Amended on Sep. 26, 2023]
| Article 4 (Verifying Details of Entrustment) |
"Matters prescribed by Presidential Decree, such as the details of subcontract, subcontract consideration, and other relevant matters" in Article 3 (8) of the Act means the following matters: <Amended on Sep. 26, 2023> | 1. | Details of the task entrusted by the prime contractor; |
| 2. | Subcontract considerations; |
| 3. | Date of entrustment by the prime contractor; |
| 4. | Names and addresses (including the address stated on the corporate register certificate, and the address of the place of business; hereinafter the same shall apply) of the prime contractor and the subcontractor; |
| 5. | Other details entrusted by a prime contractor. |
| Article 5 (Methods of Notification and Replies) |
| (1) | Notification and replies under Article 3 (8) and (9) of the Act shall be made by any of the following means: <Amended on Jul. 22, 2013; Dec. 8, 2020; Sep. 26, 2023> |
| 1. | Content-certified mail; |
| (a) | An electronic document shall contain a digital signature (limited to one that can identify the real name of a signer) defined under subparagraph 2 of Article 2 of the Digital Signature Act; |
| 3. | Other means by which the details of the notification and replies and whether the notification and replies are received can be objectively confirmed. |
| (2) | Notification and replies under paragraph (1) shall be sent to the addresses (including electronic mail addresses and official electronic addresses referred to in paragraph (1) 2 (b)) of a prime contractor and a subcontractor. <Amended on Jul. 22, 2013> |
| (3) | The Fair Trade Commission may prescribe and supply necessary forms for the notification and replies under paragraph (1). |
| Article 6 (Retention of Documents) |
| (1) | Documents concerning subcontract transactions to be retained under Article 3 (12) of the Act shall be those prescribed in Article 3 (1) of the Act and the following documents or those stating the following matters: <Amended on Jul. 22, 2013; Jul. 10, 2018; Jan. 12, 2021; Feb. 15, 2022; Jul. 11, 2022; Jan. 3, 2023; Sep. 26, 2023> |
| 2. | Outcomes of inspections of the subject matter, etc. under Article 9 of the Act, and the date when such inspections are completed; |
| 3. | Date, amount, and means of payment of the subcontract consideration (including the date of issuance, amount and due date of the bills, where the subcontract consideration is paid in bills); |
| 5. | Where a prime contractor provides a subcontractor with raw materials, etc. required to manufacture, repair, construct, or provide services for the subject matter, etc., and deducts the price thereof from the subcontract consideration, the details of such raw materials, etc., and date and amount of and reasons for the deduction; |
| 6. | Where the subcontract consideration is adjusted pursuant to Article 16 of the Act, the adjusted amount and the reasons for the adjustment; |
| 7. | Where any of the following persons files an application for the adjustment of the subcontract consideration pursuant to Article 16-2 of the Act, the details of the application and consultations, the adjusted amount, and the reasons for the adjustment: |
| 8. | The following documents: |
| (a) | Documents and specifications regarding criteria for calculating subcontract considerations; |
| (b) | Bid specifications, written requests for approval of decisions on successful bidders, and estimates; |
| (c) | Site descriptions and design specifications (such descriptions and specifications shall be retained only in cases of entrustment with construction); |
| (d) | Other documents related to decisions on subcontract considerations. |
| (2) | Documents referred to in paragraph (1) shall be retained for three years (seven years, in cases of the documents referred to in paragraph (1) 5-3 and 5-4) from the date transactions under Article 23 (2) of the Act are completed. <Amended on Oct. 16, 2018; Feb. 15, 2022> |
| Article 6-2 (Review of Proposals for Formulation or Amendment of Standard Subcontract Form) |
| (1) | If business entities or business associations under Article 3-2 (1) of the Act (hereinafter referred to as "business entities, etc.") prepare proposals for the formulation or amendment of a standard subcontract form (hereinafter referred to as "proposed standard contract form") and file a request for review thereof under paragraph (3) of that Article, the Fair Trade Commission shall give written notification of the details of the proposed standard contract form to business entities, etc. which are parties to transactions in the relevant field within 30 days from the date such request for review is filed. <Amended on Sep. 26, 2023> |
| (2) | Upon receipt of notification under paragraph (1), business entities, etc. which are parties to transactions in the relevant field may submit written opinions on a proposed standard contract form. |
| (3) | If necessary to hear opinions on a proposed standard contract form, the Fair Trade Commission may demand that business entities, etc. which have filed a request for review under Article 3-2 (3) of the Act and business entities, etc. which are parties to transactions in the relevant field participate in a meeting of the Fair Trade Commission. <Amended on Sep. 26, 2023> |
| (4) | The Fair Trade Commission shall notify the review results to business entities, etc. which have filed a request for such review before six months elapse from the date a request is filed under Article 3-2 (3) of the Act, and shall notify the details of the standard subcontract form formulated and amended to business entities, etc. which are parties to transactions in the relevant field. <Amended on Sep. 26, 2023> |
[This Article Newly Inserted on Jul. 11, 2022]
[Previous Article 6-2 moved to Article 6-4 <Jul. 11, 2022>]
| (1) | The Fair Trade Commission may appoint persons with extensive knowledge of and experience in subcontract transactions as advisors under Article 3-2 (7) of the Act. <Amended on Sep. 26, 2023> |
| (2) | Upon request by the Fair Trade Commission, advisors appointed under paragraph (1) may appear before its meetings to state their opinions on a proposed standard contract form or may submit written opinions thereon (including electronic documents). |
| (3) | Advisors who state or submit their opinions under paragraph (2) may be paid allowances or reimbursed for other necessary expenses, within the budget. |
| (4) | Except as provided in paragraphs (1) through (3), matters necessary for the tasks of advisors, procedures for giving advice, etc. shall be determined and publicly notified by the Fair Trade Commission. |
[This Article Newly Inserted on Jul. 11, 2022]
| Article 6-4 (Agreements Deemed Unfair Special Agreements) |
"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" in Article 3-4 (2) 4 of the Act means any of the following agreements: | 1. | An agreement that imposes any of the following costs or liabilities on the subcontractor: |
| (a) | A cost incurred in connection with authorization, permission, environmental management, or quality management that is specified as the prime contractor's obligation by any relevant statute or regulation; |
| (b) | A cost incurred as a consequence of a change made by the prime contractor (including the person placing the order) to the design or the scope of works; |
| (c) | A cost incurred by a cause for which the subcontractor is not liable, in relation to reworking, additional works, or repairs performed according to the prime contractor's instructions (referring to the prime contractor's expression of his or her intention for reworking, additional works, or repairs; demand, request, or whatsoever it is called); |
| (d) | Liability for defects warranty, or liability for damages, which the prime contractor shall take in accordance with relevant statutes or regulations, the agreement between the person placing the order and the prime contractor, etc.; |
| 2. | An agreement that unreasonably shifts to the subcontractor the liability arising in connection with an event unforeseeable either by the prime contractor or the subcontractor as at the time of subcontracting, such as the extension of the period of performance due to a natural disaster, the discovery of a buried cultural heritage, hacking, or a computer virus; |
| 3. | An agreement that uniformly limits the extent of acceptable overhead expenses (referring to expenses determined by subtracting material cost, direct labor cost, and direct expenses from the subcontract price) without considering the characteristics of each subcontracting transaction: Provided, That this shall exclude any agreement that stipulates the same extent of acceptable overhead expenses as stipulated in the agreement entered into by the person placing an order and the prime contractor; |
| 4. | An agreement that restricts the subcontractor's right to request adjustment of the subcontract price under Article 16-2 of the Act during the period of the contract; |
| 5. | Other agreements similar to those referred to in any of subparagraphs 1 through 4, specified and publicly notified by the Fair Trade Commission as agreements that unfairly restrict, or deprive a subcontractor of, the subcontractor's rights and interests recognized or protected by the Act. |
[This Article Newly Inserted on Feb. 11, 2014]
[Moved from Article 6-2 <Jul. 11, 2022>]
| Article 6-5 (Disclosure of Results of Bidding for Construction Subcontracts) |
| (2) | Pursuant to Article 3-5 of the Act, a business entity entrusted with construction work under paragraph (1) shall, without delay, inform bidders of the matters prescribed in the subparagraphs of that Article in writing or by electronic means after the relevant bid is opened. |
[This Article Newly Inserted on Jan. 3, 2023]
| Article 6-6 (Selection of and Support for Exemplary Enterprise, etc. Adopting Subcontract Payment Adjustment System) |
| (1) | If the Fair Trade Commission intends to select an exemplary enterprise, etc. adopting the subcontract payment adjustment system and a person who has contributed to the dissemination of the subcontract payment adjustment system (hereinafter referred to as "exemplary enterprise, etc. adopting the subcontract payment adjustment system") under Article 3-6 (1) of the Act, it shall formulate the selection criteria in consideration of the following matters and publicly announce them on its website: |
| 1. | The enterprise, etc. shall have contributed to the dissemination of the subcontract payment adjustment system; |
| 2. | The enterprise, etc. shall never have been subjected to a corrective measure for the most recent three years for violating Article 3 (2) 3 of the Act and paragraphs (3) through (5) of that Article. |
| (2) | The Fair Trade Commission may give additional points to the exemplary enterprises, etc. adopting the subcontract payment adjustment system, which are selected under Article 3-6 (1) of the Act, when evaluating the performance of an agreement under Article 3-3 of the Act. |
| (3) | The Fair Trade Commission may prepare measures for administrative and financial support for exemplary enterprises, etc. adopting subcontract payment adjustment system, in consultation with relevant administrative agencies. |
| (4) | Except as provided in paragraphs (1) through (3), matters necessary for the methods and procedures for selecting exemplary enterprises, etc. adopting the subcontract payment adjustment system, support policy measures, etc. shall be determined and publicly notified by the Fair Trade Commission. |
[This Article Newly Inserted on Sep. 26, 2023]
| Article 6-7 (Designation of Headquarters for Supporting Dissemination of Subcontract Payment Adjustment System) |
| (1) | If the Fair Trade Commission intends to designate a headquarters for supporting the dissemination of the subcontract payment adjustment system (hereinafter referred to as "adjustment support headquarters") under Article 3-7 (1) of the Act, it may designate an adjustment support headquarters for all or part of the programs referred to in the subparagraphs of paragraph (2) of that Article. |
| (2) | A person who intends to be designated as an adjustment support headquarters shall meet the following requirements for designation: |
| 1. | He or she shall have an organization dedicated to the programs; |
| 2. | He or she shall have at least six personnel dedicated to the programs: Provided, That if he or she intends to obtain designation for part of programs under paragraph (1), he or she shall have at least three, but not more than five, personnel dedicated to the programs; |
| 3. | He or she shall have an office space of at least 20 square meters for performing the programs: Provided, That if he or she intends to obtain designation for part of the programs under paragraph (1), he or she shall have an office space of at least 10 square meters but less than 20 square meters. |
| (3) | A person who intends to obtain designation under paragraph (1) shall submit to the Fair Trade Commission an application therefor, along with the following documents: |
| 1. | The articles of incorporation or other business operation regulations equivalent thereto; |
| 2. | Plans for performing programs under paragraph (1); |
| 3. | Documents substantiating that he or she meets the requirements for designation under paragraph (2). |
| (4) | A person designated as an adjustment support headquarters shall submit the performance of program operation of the previous year and a program plan for the relevant year to the Fair Trade Commission by January 31 each year. |
| 1. | Identification and publicity of best practices relating to the subcontract payment adjustment system; |
| 2. | Preparation and management of statistics relating to the subcontract payment adjustment system; |
| 3. | Analysis of the results of operation relating to the subcontract payment adjustment system and survey of satisfaction levels; |
| 4. | Support for cost analysis of enterprises relating to the subcontract payment adjustment system; |
| 5. | Support for the development of standard price indexes of raw materials relating to the subcontract payment adjustment system; |
| 6. | Other matters determined and publicly notified by the Fair Trade Commission, as necessary for disseminating the subcontract price adjustment system. |
| (6) | Criteria for revoking the designation of an adjustment support headquarters and for suspending its business operations under Article 3-7 (4) of the Act shall be as specified in attached Table 1. |
| (7) | Except as provided in paragraphs (1) through (6), matters necessary for detailed standards and procedures, etc. for designating an adjustment support headquarters shall be determined and publicly notified by the Fair Trade Commission. |
[This Article Newly Inserted on Sep. 26, 2023]
| Article 7 (Prohibition of Decision of Unjust Subcontract Consideration) |
| (1) | "Total amount direct construction expenses prescribed by Presidential Decree" in Article 4 (2) 6 of the Act shall be the sum of the costs for materials, direct labor, and expenses, incurred by the contract and paid by the prime contractor: Provided, That from among the expenses, the cost items borne by the prime contractor under an agreement between the prime contractor and the subcontractor, and the statutory cost to be borne by the prime contractor shall be excluded. |
| (2) | "Good cause" under Article 4 (2) 6 of the Act shall be determined based on the conditions of the construction site, the subcontractor’s construction capacity, etc.: Provided, That it shall be presumed that there exists good cause in any of the following cases: |
| 1. | Where a subcontractor has technical prowess backed by intellectual properties such as a patent for construction method, etc.; |
| Article 7-2 (Matters to Be Stated in Documents when Reducing Subcontract Considerations) |
"Matters prescribed by Presidential Decree, such as the reason and standard for reduction and other details" in Article 11 (3) of the Act means the following matters: | 1. | Reasons and criteria for reduction; |
| 2. | Quantity of the subject matter, etc. eligible for reduction; |
| 4. | Methods of reduction, such as deduction, etc.; |
| 5. | Other matters proving that reduction by a prime contractor is legitimate. |
[This Article Newly Inserted on Jun. 27, 2011]
| Article 7-3 (Matters to Be Stated in Documents when Requesting for Technical Data) |
"Matters prescribed by Presidential Decree, such as the purpose of request, reversion of rights, a cost, etc." in Article 12-3 (2) of the Act means the following matters: <Amended on Oct. 16, 2018; Feb. 15, 2022> | 1. | Purposes for which the technical data is requested; |
| 2. | Deleted; <Feb. 15, 2022> |
| 3. | Reversion of rights related to the requested technical data; |
| 4. | Cost of the requested technical data and the payment method thereof; |
| 5. | Name and scope of the requested technical data; |
| 6. | Date of request, and date and method of provision; |
| 6-2. | Deleted; <Feb. 15, 2022> |
| 6-3. | Deleted; <Feb. 15, 2022> |
| 6-4. | Deleted; <Feb. 15, 2022> |
| 7. | Other matters proving the legitimacy of the prime contractor’s request for technical data. |
[This Article Newly Inserted on Jun. 27, 2011]
| Article 7-4 (Details of Confidentiality Contracts) |
"Matters prescribed by Presidential Decree, such as the scope of the relevant technical data, the list of executive officers and employees who will receive and retain the technical data, the duty to maintain confidentiality and prohibition of use for purposes other than the intended purpose, and the compensation for violations" in Article 12-3 (3) of the Act means the following: | 1. | Name and scope of the technical data; |
| 2. | Period of use of technical data; |
| 3. | A list of executive officers and employees who will receive and keep the technical data; |
| 4. | Obligation to maintain confidentiality of technical data; |
| 5. | Prohibition of the use of technical data for other than the original purpose; |
| 6. | Compensation for a violation of subparagraph 4 or 5; |
| 7. | Methods and date of return or destruction of technical data. |
[This Article Newly Inserted on Feb. 15, 2022]
[Previous Article 7-4 moved to Article 7-5 <Feb. 15, 2022>]
| Article 7-5 (Criteria for Annual Sales of Middle-Standing Enterprises Deemed Subcontractors) |
“Amounts prescribed by Presidential Decree” in the former part, with the exception of the subparagraphs, of Article 13 (11) of the Act means the annual sales, as classified in attached Table 1-2, by main business type of a relevant middle-standing enterprise. <Amended on Sep. 26, 2023> [This Article Newly Inserted on Jan. 22, 2016]
[Moved from Article 7-4; previous Article 7-5 moved to Article 7-6 <Feb. 15, 2022>]
| Article 7-6 (Sales Criteria for Business Entity Deemed as Prime Contractor) |
[This Article Newly Inserted on Jan. 22, 2016]
[Moved from Article 7-5 <Feb. 15, 2022>]
| Article 8 (Performance Guarantees for Construction Subcontracts and for Payment of Consideration) |
| (1) | “Case ... which is prescribed by Presidential Decree" in the proviso, with the exception of the subparagraphs, of Article 13-2 (1) of the Act means any of the following cases: <Amended on Aug. 27, 2013; Nov. 27, 2013; Dec. 27, 2016; Apr. 7, 2020> |
| 1. | Where a prime contractor entrusts a construction project with a subcontractor and the cost of the construction project does not exceed 10 million won; |
| 2. | Deleted; <Apr. 7, 2020> |
| 4. | Where a person placing an order pays subcontract consideration to a prime contractor by utilizing a system operated to manage the payment of subcontract consideration electronically (hereinafter referred to as "subcontract consideration payment management system") without going through an account established in the name of the prime contractor. |
| (2) | "Guarantee institutions prescribed by Presidential Decree" in Article 13-2 (5) 5 of the Act means the following persons: <Amended on Jul. 9, 2019> |
| 1. | The Electric Constructors' Financial Cooperative under the Electric Constructors' Financial Cooperative Act; |
| 5. | Other institutions determined and publicly notified by the Fair Trade Commission among the institutions able to take charge of guarantee business under other statutes or regulations. |
| (3) | "If there is a difference in opinions on whether the requirements for the payment of an amount of guarantee are satisfied or there is any other event or cause beyond control specified by Presidential Decree" in the proviso, with the exception of the subparagraphs, of Article 13-2 (6) of the Act means either of the following cases: <Newly Inserted on Feb. 11, 2014; Jan. 22, 2016; Sep. 29, 2017> |
| 1. | Where it is unclear whether the prime contractor and the subcontractor have performed a contract during a guarantee period, necessitating supplemental documents; |
| 2. | Where opinions differ between the prime contractor and the subcontractor regarding payable progress payments (referring to the payments to be made as consideration in return for the performance of a contract, irrespective of whatsoever it is called). |
| (4) | "Period specified by Presidential Decree" in the proviso, with the exception of the subparagraphs, of Article 13-2 (6) of the Act means 30 days: Provided, That the period may be extended only once, by up to 15 days by agreement with the subcontractor. <Newly Inserted on Feb. 11, 2014; Jan. 22, 2016; Sep. 29, 2017> |
| (5) | "If the prime contractor is unable to pay the subcontract consideration due to a cause or event specified by Presidential Decree as similar to incapability of payment referred to in subparagraph 1 through 4" in Article 13-2 (6) 5 of the Act means where the prime contractor is unable to pay the subcontract price due to any of the following: <Newly Inserted on Feb. 11, 2014; Jan. 22, 2016; Apr. 29, 2016; Sep. 29, 2017> |
| 2. | Where a third-party creditor has obtained an attachment or provisional attachment of the prime contractor's claim for the payment of contract consideration against the person placing an order or the prime contractor has assigned such claim for the payment of contract consideration to a third party; |
| 3. | Where the prime contractor fails to pay subcontract price to a credit card company or a financial institution after the credit card company or financial institution pays the subcontract price by a redeemable means of payment in lieu of a bill under Article 2 (14) of the Act; |
| 4. | Where a bill delivered by the prime contractor to the subcontractor as payment of the subcontract price is dishonored; |
| 5. | Where the prime contractor fails to pay the subcontract price even after the receipt of demand notices for payment, from the subcontractor at least twice after the due date for the payment. |
| (6) | The Fair Trade Commission shall determine and publish types of subcontract consideration payment management system eligible for exemption from the obligation to guarantee the payment of consideration prescribed under paragraph (1) 4. <Newly Inserted on Dec. 27, 2016> |
[Title Amended on Nov. 27, 2013]
| Article 8-2 (Disclosure of Payment Conditions of Subcontract Considerations) |
| 1. | The amount of subcontract considerations paid for each half-year by payment method and the ratio of such amounts; |
| 2. | The amount of subcontract considerations paid for each half-year by payment period and the ratio of such amount; |
| 3. | Whether a prime contractor establishes a subcontract consideration dispute mediation body, and the following matters if such subcontract consideration dispute mediation body is established: |
| (a) | The department-in-charge at the subcontract consideration dispute mediation body and contact information of such department; |
| (b) | Procedures and methods for filing an application for subcontract consideration dispute mediation and the period required for such mediation. |
| (2) | Where a prime contractor belonging to a business group subject to disclosure designated under the former part of Article 31 (1) of the Monopoly Regulation and Fair Trade Act discloses the matters prescribed in the subparagraphs of paragraph (1) pursuant to Article 13-3 (1) of the Act, he or she shall do so through an information system determined and publicly notified by the Fair Trade Commission within 45 days from the date immediately following the date each half-year ends. |
| (3) | Except as provided in paragraph (2), detailed methods and procedures for disclosure under Article 13-3 (1) of the Act and other necessary matters shall be determined and publicly notified by the Fair Trade Commission. |
[This Article Newly Inserted on Jan. 3, 2023]
| Article 9 (Direct Payment of Subcontract Consideration) |
| (1) | Any request from a subcontractor for direct payment under Article 14 (1) of the Act shall take effect when the expression of intention thereof reaches a person placing an order, and the fact that said expression of intention has reached that person shall be evidenced by the relevant subcontractor. |
| (3) | A person placing an order shall bear the obligation to directly pay the subcontract consideration within the extent of obligation to pay the price to the prime contractor. |
| (4) | Where the requirements for directly paying the subcontract consideration are met and the subcontract consideration has been finally set for the part manufactured, repaired, or constructed by the subcontractor, a person placing an order shall pay the subcontract consideration to the subcontractor pursuant to the provisions of the relevant subcontract. |
| Article 9-2 (Cooperative's Negotiation for Adjustment of Subcontract Considerations) |
| (1) | In applying Articles 16-2 (1) or (2) of the Act, supply costs shall be the cost required by a subcontractor for manufacturing, repairing, or constructing subject matter, etc. or for performing services, such as material cost, labor cost, and expenses. <Newly Inserted on Jul. 10, 2018> |
| (2) | Deleted. <Sep. 26, 2023> |
| (3) | "Prime contractor specified by Presidential Decree" in the main clause of Article 16-2 (2) of the Act means either of the following persons: <Newly Inserted on Nov. 27, 2013; Jul. 21, 2014; Jan. 22, 2016; Jul. 10, 2018; Jan. 12, 2021> |
| (4) | Deleted. <Jan. 12, 2021> |
| (5) | Deleted. <Jan. 12, 2021> |
| (6) | A subcontractor who intends to make a request under the main clause of Article 16-2 (2) of the Act shall submit a written request, with the following documents, to the cooperative of which he or she is a member: <Newly Inserted on Nov. 27, 2013; Jul. 10, 2018; Jan. 12, 2021> |
| 1. | Deleted; <Sep. 26, 2023> |
| 2. | A copy of a subcontract (including a document evidencing that the contract price has been adjusted, if so); |
| 3. | A document evidencing that a subcontract was awarded through competitive bidding, if so; |
| 4. | Other documents necessary for adjusting the subcontract price with the prime contractor. |
| (7) | If a cooperative intends to negotiate with a prime contractor to adjust a subcontract payment under the main clause of Article 16-2 (2) of the Act, it shall submit to the prime contractor a written request therefor along with the documents specified in paragraph (6) 2 through 4 of this Article. <Amended on Sep. 26, 2023> |
| (8) | If a cooperative intends to request the Central Federation to discuss with a prime contractor for the adjustment of subcontract considerations under Article 16-2 (4) of the Act, it shall submit the following documents to the Central Federation: <Newly Inserted on Jan. 3, 2023; Sep. 26, 2023> |
| 1. | A written request under the provisions, with the exception of the subparagraphs, of paragraph (6); |
| 2. | Documents specified in paragraph (6) 2 through 4; |
| 3. | Deleted; <Sep. 26, 2023> |
| 4. | A written consent of a subcontractor. |
| (9) | Where the Central Federation intends to request a prime contractor to adjust a subcontract payment under Article 16-2 (5) of the Act, it shall submit the documents prescribed in paragraph (8) 2 of this Article to the prime contractor. <Newly Inserted on Jan. 3, 2023; Sep. 26, 2023> |
[This Article Newly Inserted on Jun. 27, 2011]
[Title Amended on Jul. 22, 2013; Nov. 27, 2013]
| Article 9-3 (Grounds for Requesting Mediation to Subcontract Dispute Mediation Council) |
"Reasons prescribed by Presidential Decree, such as where a prime contractor or subcontractor expresses intent to suspend negotiations" in Article 16-2 (11) 3 of the Act means any of the following cases: <Amended on Nov. 27, 2013; Jan. 3, 2023> | 1. | Where the prime contractor or the subcontractor (including the cooperative and the Central Federation, in cases of negotiations on adjustment under the main clause of Article 16-2 (3) of the Act and paragraph (5) of that Article; hereafter in subparagraph 2, the same shall apply) expresses intent to suspend negotiations; |
| 2. | Where the adjusted amount proposed either by the prime contractor or by the subcontractor is at least double the adjusted amount proposed by the other party; |
| 3. | Where delay in agreement is likely to severely frustrate business activities or cause a severe loss to either the prime contractor or the subcontractor; |
| 4. | Where any other equivalent causes exist. |
[This Article Newly Inserted on Jun. 27, 2011]
| Article 9-4 (Grounds for Recognition of Payment in Substitutes) |
"Cause prescribed by Presidential Decree by which it is deemed that a prime contractor cannot help but make payment in kind" in Article 17 (1) 3 of the Act means cases where a council of financial creditors adopts a resolution to commence joint administrative proceeding against a prime contractor in accordance with the Corporate Restructuring Promotion Act and the proceeding is underway. [This Article Newly Inserted on Sep. 29, 2017]
[Previous Article 9-4 moved to Article 9-5 <Sep. 29, 2017>]
| Article 9-5 (Documents to Be Presented Prior to Payment in Substitutes, Methods of Presentation, and Other Necessary Matters) |
| (1) | The documents that a prime contractor shall present to a subcontractor under Article 17 (3) of the Act shall be as specified in the following subparagraphs: |
| 1. | If the goods to be delivered for payment in substitutes are goods over which rights and obligations shall be registered or recorded in an official register in accordance with the relevant statutes or regulations: Certified transcripts of such official register (including photocopies); |
| 2. | If the goods to be delivered for payment in substitutes are goods other than those provided for in subparagraph 1: Notarial deeds stating rights and obligations over the goods (referring to a deed made under the Notary Public Act). |
| (2) | Documents provided for in paragraph (1) shall be presented in any of the following methods. If the documents presented in such cases are not printed on paper, a means shall be provided to enable them to be printed on paper: |
| 1. | Delivery, in person or by mail, of documents printed on paper or documents stored in an electronic file format in a magnetic disc (including a magnetic tape or any other medium, the contents of which can be recorded, stored, and printed in a similar manner); |
| 2. | Transmission of an electronic file, in which documents referred to in paragraph (1) are stored, to the subcontractor's e-mail address: Provided, That the foregoing shall apply only where the prime contractor uses a computer with a device for the notice of automatic receipt that makes it possible to verify the time when an e-mail is dispatched or arrives. |
| (3) | If any of the rights and obligations on goods referred to in Article 17 (2) of the Act is changed before payment is made in substitutes, after the documents referred to in paragraph (1) are presented, the prime contractor shall re-present the documents under paragraph (1) to the subcontractor by means under paragraph (2), without delay, after reflecting such change in the documents. |
| (4) | A prime contractor shall prepare a document stating following details therein, without delay, after presenting the documents under paragraph (2) or (3), and deliver the document to the subcontractor, and the prime contractor and the subcontractor shall keep the document, respectively: |
| 1. | The date on which the prime contractor presented the documents; |
| 2. | Main details of the documents; |
| 3. | The fact that the subcontractor has received the documents; |
| 4. | The names, places of business, and telephone numbers of the prime contractor and the subcontractor; |
| 5. | Signatures or seals affixed by the prime contractor and the subcontractor. |
[This Article Newly Inserted on Feb. 11, 2014]
[Moved from Article 9-4 <Sep. 29, 2017>]
| Article 10 (Reports and Notifications of Violations) |
| (1) | A person who intends to file a report pursuant to the former part of Article 22 (1) of the Act shall clearly state the following: <Amended on Jul. 19, 2016> |
| 1. | Name and address of the reporter; |
| 2. | Name or title of the reported person (including the name of its representative, in the case of a juristic person); |
| 3. | Details of violations and data to attest them. |
| (2) | Within 15 days from the date on which the Fair Trade Commission receives a report as prescribed in the former part of Article 22 (1) of the Act, the Fair Trade Commission shall deliver or send by mail (including electronic mail) a document directly to the reporting person to verify whether he or she give consent to the following: <Amended on Jan. 22, 2016; Jul. 19, 2016> |
| 1. | Consent that the Fair Trade Commission will notify the prime contractor of the fact that the report has been received; |
| 2. | Where notification is made pursuant to subparagraph 1, consent that the reporter and the content will be also notified. |
| (3) | Where a reporting person fails to notify the Fair Trade Commission of his or her consent in writing within 15 days from the date he or she receives a document delivered or sent by mail (including electronic mail) by the Fair Trade Commission as prescribed in the provisions, with the exception of the subparagraphs, of paragraph (2), he or she shall be considered not giving his or her consent required under paragraph (2). <Amended on Jul. 19, 2016> |
| (4) | Where the Fair Trade Commission is notified as prescribed in paragraph (3), it shall deliver or send by mail (including electronic mail) a document directly to the prime contractor, stating the fact of receiving a report, the person who filed the report, and the details of the report within seven days from the date of such notice. <Newly Inserted on Jul. 19, 2016> |
| Article 10-2 (Payment of Monetary Awards) |
| (1) | A person eligible for monetary awards under Article 22 (5) of the Act shall be a person who makes a report or provides information on any such violation of the Act as referred to in the Article 22 (5) of the Act (hereafter in this Article referred to as a “violation of the Act”) and first submits any data evidencing the violation of the Act. |
| (2) | Notwithstanding paragraph (1), any of the following persons shall be excluded from the scope of persons eligible for monetary awards: |
| 1. | A prime contractor who commits a relevant violation of the Act; |
| 2. | Deleted; <Sep. 29, 2017> |
| 3. | The subcontractor who suffers any damage caused by the relevant violation of the Act; |
| 4. | Deleted. <Sep. 29, 2017> |
| (3) | The Fair Trade Commission shall pay monetary awards within three months from the date on which it deems that any act on which a report has been made or information has been provided (where any objection is raised, it refers to the date of rendering a ruling on such objection) falls under a violation of the Act, and shall adopt a resolution to impose a disposition, such as corrective measure, on a prime contractor who has committed the violation of the Act. |
| (4) | With respect to monetary awards paid pursuant to paragraph (3), detailed payment standards by type of violations of the Act shall be determined and publicly notified by the Fair Trade Commission in consideration of the gravity of a violation of the Act, the level of evidence of the relevant violation, and so forth. |
| (5) | A deliberative committee on monetary awards for reporting may be established under the Fair Trade Commission to deliberate on the affairs relating to the payment of monetary awards under paragraph (3). |
| (6) | The matters concerning the establishment and operation of the deliberative committee on monetary awards for reporting under paragraph (5), and other detailed matters concerning the standards, procedures, etc. of the payment of monetary awards shall be determined and publicly notified by the Fair Trade Commission. |
[This Article Newly Inserted on Jan. 22, 2016]
| Article 11 (Termination of Dispute Mediation) |
Where a subcontract dispute mediation council under Article 24 of the Act dismisses a request for mediation or terminates mediation process pursuant to Article 24-5 (5) of the Act, it shall prepare a report on termination of dispute mediation including the following matters and submit it to the Fair Trade Commission: | 1. | General status of disputing parties; |
| 4. | Grounds for dismissing the request for mediation or terminating mediation process. |
[This Article Newly Inserted on Jul. 10, 2018]
| Article 12 (Reports on Deposit) |
A person placing an order, or a prime contractor, who has made a deposit pursuant to Article 25-2 of the Act shall report it in writing to the Fair Trade Commission without delay. <Amended on Jul. 19, 2016>
| Article 13 (Criteria for Imposition of Penalty Surcharges) |
| (1) | The amount of a penalty surcharge under Article 25-3 of the Act shall be calculated by applying the standard prescribed in attached Table 2. |
| (2) | Deleted. <Jan. 22, 2016> |
| (3) | Matters necessary for the imposition of a penalty surcharge, in addition to those provided for in this Decree, shall be determined by the Fair Trade Commission. |
| Article 13-2 (Standards for Delaying Payment Deadline for Penalty Surcharges and Paying Them in Installments) |
| (1) | "Amount prescribed by Presidential Decree" in the former part, with the exception of the subparagraphs, of Article 25-3 (2) of the Act means one billion won (500 million won where a person subject to a penalty surcharge is a small and medium business entrepreneur prescribed in Article 2 (2) 1 of the Act). |
| (2) | The period of delaying the payment deadline under Article 25-3 (2) of the Act shall not exceed two years from the date immediately following the payment deadline. |
| (3) | In the case of payment in installments under Article 25-3 (2) of the Act, the interval between installment payments shall not exceed six months, and the number of such payments shall not exceed six times. |
| (4) | "Matters prescribed by Presidential Decree" in the provisions, with the exception of the subparagraphs, of Article 25-3 (3) of the Act means those classified as follows: |
| 1. | Net loss for the relevant term: Whether a person who is subject to a penalty surcharge as at the time of filing an application for delaying the payment deadline or for paying the penalty surcharge in installments sustains a net loss for the relevant term for three consecutive business years; |
| 2. | Debt ratio: Whether a person who is subject to a penalty surcharge as at the time of filing an application for delaying the payment deadline or for paying the penalty surcharge in installments holds debts exceeding two times the total capital (referring to the amount calculated by subtracting debts from the total assets indicated in the statement of financial position); |
| 3. | Other matters necessary to verify financial positions: Matters determined and publicly notified by the Fair Trade Commission, such as the ratio of penalty surcharges to cash reserves as at the time an application is filed for delaying the payment deadline or for paying penalty surcharges in installments. |
[This Article Newly Inserted on Jan. 3, 2023]
| Article 14 (Application Mutatis Mutandis) |
| Article 15 (Criteria for Publication of Lists of Habitual Violators) |
| (1) | "Criteria prescribed by Presidential Decree" in the main clause of Article 25-4 (1) of the Act means four accumulated points in accordance with subparagraph 1 (d) of attached Table 3. <Amended on Dec. 27, 2016> |
| (2) | Matters to be published when publishing the lists of habitual violators under the main clause of Article 25-4 (1) of the Act (hereinafter referred to as "habitual violator") shall be the name of the business entity (including the name of the corporation), the representative, and the address of the place of business. <Amended on Jan. 12, 2021> |
| (3) | If the lists are posted on the Internet homepage of the Fair Trade Commission pursuant to Article 25-4 (5) of the Act, the period of posting shall be one year. |
| Article 16 (Composition and Operation of Deliberative Committee on Publication of Lists of Habitual Violators) |
| (1) | The Deliberative Committee on Publication of Lists of Habitual Violators (hereinafter referred to as "the Deliberative Committee") referred to in Article 25-4 (3) of the Act shall be comprised of seven members, including one Chairperson. |
| (2) | The Secretary General for Investigation of the Fair Trade Commission shall serve as the chairperson of the Deliberative Committee (hereafter in this Article referred to as "chairperson"), and the following persons shall serve as the members: <Amended on Mar. 28, 2023> |
| 1. | Three persons appointed by the Chairperson of the Fair Trade Commission from among public officials in general service belonging to the Senior Executive Service of the Fair Trade Service; |
| 2. | Three persons commissioned by the Chairperson of the Fair Trade Commission from among those who have extensive knowledge and experience in subcontract transactions. |
| (3) | The term of office of the commissioned members referred to in paragraph (2) 2 shall be three years. |
| (4) | Where any member commissioned pursuant to paragraph (2) 2 falls under any of the following subparagraphs, the Chairperson of the Fair Trade Commission may dismiss such member: <Newly Inserted on Jan. 22, 2016> |
| 1. | Where he or she is incapable of carrying out his or her duties due to mental handicap; |
| 2. | Where he or she conducts any irregularity in connection with his or her duties; |
| 3. | Where he or she is deemed unsuitable to serve as a member due to his or her neglect of duties, injury to dignity, or any other reason; |
| 4. | Where he or she voluntarily confesses that it is difficult for him or her to perform his or her duties. |
| (5) | The chairperson shall exercise general supervision and control over the affairs of the Deliberative Committee, but the member thereof nominated by the chairperson shall, where the chairperson is unable to perform his or her duties due to any inevitable reason, act on behalf of the chairperson. <Amended on Jan. 22, 2016> |
| (6) | A majority of the members of the Committee shall constitute a quorum, and any decision thereof shall require the concurring votes of at least a majority of those present. <Amended on Jan. 22, 2016> |
| (7) | Except as provided in paragraphs (1) through (6), other matters necessary for the composition and operation of the Deliberative Committee shall be determined by the Chairperson of the Fair Trade Commission through resolution by the Deliberative Committee. <Amended on Jan. 22, 2016> |
| Article 16-2 (Cooperation of Heads of Relevant Administrative Agencies) |
| (1) | For cooperation under Article 26 (1) of the Act, the Fair Trade Commission may provide the head of the relevant administrative agency with necessary information, such as a list of business entities who have achieved excellent evaluation results in implementing an agreement concluded pursuant to Article 3-3 of the Act. |
| (2) | Where the head of the relevant administrative agency provided with information pursuant to paragraph (1) takes necessary measures pursuant to the relevant statutes, regulations, etc., the Fair Trade Commission may request him or her to notify the details thereof. |
[This Article Newly Inserted on Jan. 12, 2021]
| Article 17 (Criteria for Imposition of Penalty Points) |
| (1) | The criteria for imposition of penalty points by the Fair Trade Commission under Article 26 (2) of the Act shall be as specified in attached Table 3. |
| (2) | "Where such penalty points exceed the criteria prescribed by Presidential Decree" in Article 26 (2) of the Act means where the points accumulated under subparagraph 1 (d) of attached Table 3 exceed the points specified in either of the following: <Amended on Nov. 1, 2011; Nov. 27, 2013; Jan. 22, 2016> |
| 1. | A request for limitation on participation in bidding: Five points; |
| (3) | Details concerning the imposition and reduction of penalty points under attached Table 3 shall be determined and publicly notified by the Fair Trade Commission. |
| Article 17-2 (Re-Examination of Regulation) |
| (1) | The Fair Trade Commission shall examine the appropriateness of the scope, etc. of documents to be kept concerning subcontract transactions pursuant to Article 6 every five years (referring to the period that ends on the day before January 1 of every fifth anniversary) from the base date of January 1, 2014 and take measures for improvement, etc. <Amended on Feb. 11, 2014> |
| (2) | The Fair Trade Commission shall examine the appropriateness of the following matters every three years, counting from each base date specified in the following (referring to the period that ends on the day before the base date of every third anniversary) and shall take measures, such as making improvements: <Amended on Dec. 12, 2017; Jul. 10, 2018; Oct. 16, 2018; Mar. 3, 2020; Mar. 8, 2022; Jan. 3, 2023; Mar. 7, 2023; Sep. 26, 2023> |
| 1. | Matters subject to disclosure of conditions, etc. of subcontract payment under Article 8-2 (1): January 1, 2026; |
| 2. | Criteria for imposition of penalty points under Article 17 and subparagraph 2 (c) of attached Table 3: January 1, 2024. |
| (3) | Deleted. <Dec. 12, 2017> |
[This Article Newly Inserted on Dec. 30, 2013]
| Article 18 (Criteria for Imposition of Administrative Fines) |
The criteria for imposition of administrative fines provided in Article 30-2 (1) through (7) of the Act shall be as specified in the following: <Amended on Apr. 30, 2018; Oct. 16, 2018; Jan. 3, 2023; Sep. 26, 2023> [This Article Newly Inserted on Mar. 29, 2011]
ADDENDA <Presidential Decree No. 22297, Jul. 21, 2010>
Article 1 (Enforcement Date)
This Decree shall enter into force on July 26, 2010.
Article 2 (Transitional Measures concerning Criteria for Imposition of Penalty Points)
Where penalty points are imposed for violations that occur before this Decree enters into force, the previous provisions shall apply.
Article 3 Omitted.
Article 4 (Relationship to Other Statutes)
If any statute cites the provisions of the previous Enforcement Decree of the Fair Transactions in Subcontracting Act as at the time this Decree enters into force and this Act includes provisions corresponding to the cited provisions, it shall be deemed that such statute cites the corresponding provisions of this Act in lieu of the previous provisions.
ADDENDA <Presidential Decree No. 22455, Oct. 18, 2010>
Article 1 (Enforcement Date)
This Decree shall enter into force on October 24, 2010. (Proviso Omitted.)
Articles 2 through 4 Omitted.
ADDENDA <Presidential Decree No. 22746, Mar. 29, 2011>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Transitional Measures concerning Administrative Fines)
Where administrative fines are imposed for violations that occur before this Decree enters into force, the previous provisions shall apply notwithstanding the amended provisions of attached Table 4.
ADDENDUM <Presidential Decree No. 22989, Jun. 27, 2011>
This Decree shall enter into force on June 30, 2011.
ADDENDA <Presidential Decree No. 23267, Oct. 28, 2011>
Article 1 (Enforcement Date)
This Decree shall enter into force on October 29, 2011.
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 23282, Nov. 1, 2011>
Article 1 (Enforcement Date)
This Decree shall enter into force on November 25, 2011. (Proviso Omitted.)
Articles 2 through 6 Omitted.
ADDENDA <Presidential Decree No. 23864, Jun. 19, 2012>
Article 1 (Enforcement Date)
This Decree shall enter into force on June 22, 2012.
Articles 2 through 7 Omitted.
ADDENDA <Presidential Decree No. 24436, Mar. 23, 2013>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 24673, Jul. 22, 2013>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Applicability to Entrustment with Manufacturing of Ready-Mixed Concrete)
The amended provisions of Article 2 (5) shall apply starting from the cases where the manufacturing of ready-mixed concrete is entrusted after this Decree enters into force. Article 3 (Applicability to Preservation of Documents)
The amended provisions of Article 6 (1) shall apply to subcontract transactions conducted after this Decree enters into force. Article 4 (Applicability to Criteria for Imposition of Penalty Surcharges)
The amended provisions of subparagraphs 2 (1) (i) and 18 (f) of Table 2 attached hereto shall apply to violations that occur after this Decree enters into force.
Article 5 (Transitional Measures concerning Criteria for Imposition of Penalty Points)
| (1) | Notwithstanding the amended provisions of subparagraphs 1 (c) and 3 (a) (ii) of Table 3 attached hereto, the previous provisions shall apply to the computation of cumulative points for the completion of special educational courses provided by a contractor on subcontracting before this Decree enters into force and the criteria for the reduction of penalty points. |
| (2) | Notwithstanding the amended provisions of subparagraphs 1 (c) and 3 (a) (iii) of Table 3 attached hereto, the previous provisions shall apply to the computation of cumulative points for commendations awarded to a contractor as an exemplary company in subcontracting transactions before this Decree enters into force and the criteria for the reduction of penalty points. |
| (3) | Notwithstanding the amended provisions of subparagraphs 1 (d) and 3 (a) 4) of Table 3 attached hereto, the previous provisions shall apply to the criteria for the reduction of penalty points in consideration of the ratio of payment in cash and the ratio of payment in cash equivalent for the business year in which this Decree enters into force. |
| (4) | Notwithstanding the amended provisions of subparagraph 3 (a) 5) of Table 3 attached hereto, the previous provisions shall apply to the criteria for the reduction of penalty points in consideration of the ratio of electronic tenders during the business year in which this Decree enters into force. |
| (5) | Notwithstanding the amended provisions of subparagraph 3 (a) 6) of Table 3 attached hereto, the previous provisions shall apply to the criteria for the reduction of penalty points in consideration of a contractor’s performance of an agreement evaluated before this Decree enters into force. |
| (6) | Notwithstanding the amended provisions of subparagraph 3 (a) of Table 3 attached hereto, the previous provisions shall apply to the criteria for the reduction of penalty points in consideration of the Fair Trade Commission’s criteria introduced and implemented by a contractor before this Decree enters into force. |
ADDENDA <Presidential Decree No. 24697, Aug. 27, 2013>
Article 1 (Enforcement Date)
This Decree shall enter into force on August 29, 2013. (Proviso Omitted.)
Articles 2 through 13 Omitted.
ADDENDA <Presidential Decree No. 24883, Nov. 27, 2013>
Article 1 (Enforcement Date)
This Decree shall enter into force on November 29, 2013: Provided, That the amended provisions of Article 17 (2) shall enter into force on November 29, 2014. Article 2 (Applicability to Performance Guarantees for Construction Subcontracts and Payment of Consideration)
The amended provisions of Article 8 (1) 1 shall apply starting from the cases where a construction project is entrusted after this Decree enters into force. Article 3 (Transitional Measures, etc. concerning Application of Criteria for Accumulated Points)
| (1) | If the accumulated points, determined after the amended provisions of Article 17 (2) enter into force under the proviso to Article 1 of the Addenda, are composed only of penalty points imposed for violations committed before the amended provisions enter into force, the previous provisions shall apply, notwithstanding the amended provisions. |
| (2) | If the accumulated points, determined after the amended provisions of Article 17 (2) enter into force under the proviso to Article 1 of the Addenda, include the penalty points imposed for violations committed after the amended provisions enter into force, the amended provisions shall apply. |
Article 4 (Transitional Measures concerning Criteria for Imposition of Penalty Surcharges)
Notwithstanding the amended provisions of subparagraph 2 (a) 1 of attached Table 2, the previous provisions shall apply to the criteria for imposition of penalty surcharges for violations committed before this Decree enters into force.
ADDENDUM <Presidential Decree No. 25050, Dec. 30, 2013>
This Decree shall enter into force on January 1, 2014. (Proviso Omitted.)
ADDENDUM <Presidential Decree No. 25174, Feb. 11, 2014>
This Decree shall enter into force on February 14, 2014.
ADDENDA <Presidential Decree No. 25495, Jul. 21, 2014>
Article 1 (Enforcement Date)
This Decree shall enter into force on July 22, 2014.
Article 2 Omitted.
ADDENDA <Presidential Decree No. 25840, Dec. 9, 2014>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 2015.
Articles 2 through 16 Omitted.
ADDENDA <Presidential Decree No. 26369, Jun. 30, 2015>
Article 1 (Enforcement Date)
This Decree shall enter into force on July 1, 2015.
Articles 2 through 4 Omitted.
ADDENDA <Presidential Decree No. 26438, Jul. 24, 2015>
Article 1 (Enforcement Date)
This Decree shall enter into force on July 29, 2015.
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 26933, Jan. 22, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 25, 2016: Provided, That the amended provisions of Article 13 (2) and attached Table 2 shall enter into force on July 25, 2016. Article 2 (Applicability to Reporting of Violations)
The amended provisions of Article 10 (2) shall also apply to the reports which have been received before this Decree enters into force. Article 3 (Applicability, etc. to Criteria for Imposition of Penalty Points)
| (1) | The amended provisions of subparagraph 2 (a) (iv) and subparagraph 2 (c) of attached Table 3 shall apply beginning from cases where a corrective order or warning disposition is imposed or where any of the councils mediates a dispute after this Decree enters into force. |
| (2) | Notwithstanding the amended provisions of the subparagraph 3 (a) (vi) of attached Table 3, the previous provisions shall apply to the agreements concluded before this Decree enters into force. |
Article 4 (Transitional Measures concerning Criteria for Imposition of Penalty Surcharges)
Notwithstanding the amended provisions of Article 13 (2) and attached Table 2, the previous provisions shall apply where penalty surcharges are imposed for violations that occur before the enforcement date under the proviso to Article 1 of the Addenda.
ADDENDA <Presidential Decree No. 27115, Apr. 29, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 27367, Jul. 19, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Applicability, etc. to Reporting and Notification of Violations)
| (1) | The amended provisions of Article 10 shall also apply to reports received (excluding reports filed by subcontractors) before this Decree enters into force. |
| (2) | Notwithstanding the amended provisions of Article 10, the previous provisions shall apply to reports filed by subcontractors before this Decree enters into force. |
ADDENDA <Presidential Decree No. 27444, Aug. 11, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on August 12, 2016.
Articles 2 through 8 Omitted.
ADDENDA <Presidential Decree No. 27702, Dec. 27, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation: Provided, That the amended provisions of Article 8 (1) 4, paragraph (6) of the same Article, and subparagraph 3 (a) (viii) of attached Table 3 shall enter into force six months after its promulgation. Article 2 (Applicability to Criteria for Imposition of Penalty Points)
| (1) | The amended provisions of subparagraph 1 (d) of attached Table 1 shall apply starting from the cases where penalty points are imposed after this Decree enters into force. |
| (2) | The amended provisions of subparagraph 2 (a) (vii) of attached Table 3 shall apply starting from the cases where penalty points are imposed for violations committed after this Decree enters into force. |
ADDENDA <Presidential Decree No. 27751, Dec. 30, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 2017. (Proviso Omitted.)
Articles 2 through 12 Omitted.
ADDENDA <Presidential Decree No. 28353, Sep. 29, 2017>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation: Provided, That the amended provisions of Articles 9-4 and 9-5 shall enter into force on October 19, 2017. Article 2 (Applicability to Persons Eligible for Payment of Monetary Rewards)
The amended provisions of Article 10-2 (2) 2 and 4 shall apply to the cases where a person reports, or informs, and submits data evidencing any violation of an Act that occurs before this Decree enters into force.
ADDENDA <Presidential Decree No. 28471, Dec. 12, 2017>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 2018.
Article 2 Omitted.
ADDENDA <Presidential Decree No. 28848, Apr. 30, 2018>
Article 1 (Enforcement Date)
This Decree shall enter into force on May 1, 2018.
Article 2 (Transitional Measures concerning Administrative Fines)
| (1) | Where administrative fines are imposed for violations that occur before this Decree enters into force, the previous provisions shall apply notwithstanding of the amended provisions of Table 4. |
| (2) | Impositions of administrative fines for violations that occur before this Decree enters into force shall not be taken into account in the number of violations calculated under the amended provisions of Table 4. |
ADDENDUM <Presidential Decree No. 29042, Jul. 10, 2018>
This Decree shall enter into force on July 17, 2018.
ADDENDA <Presidential Decree No. 29238, Oct. 16, 2018>
Article 1 (Enforcement Date)
This Decree shall enter into force on October 18, 2018.
Article 2 (Applicability to Retention of Documents)
The amended provisions of Article 6 (2) shall apply starting from a subcontract transaction for which three years have not passed as at the time this Decree enters into force since the date the transaction was completed. Article 3 (Applicability to Criteria for Imposition of Penalty Points)
The amended provisions of subparagraph 2 (a) (vi) and (vii) of attached Table 3 shall apply starting from the cases where penalty points are imposed against a violation committed after this Decree enters into force.
Article 4 (Transitional Measures concerning Criteria for Imposition of Penalty Surcharges)
Notwithstanding the amended provisions of subparagraph 2 (a) (ii) of attached Table 2, application of the criteria for imposition of penalty surcharges against violations committed before this Decree enters into force shall be governed by the previous provisions.
ADDENDUM <Presidential Decree No. 29972, Jul. 9, 2019>
This Decree shall enter into force on the date of its promulgation.
ADDENDUM <Presidential Decree No. 30509, Mar. 3, 2020>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 30606, Apr. 7, 2020>
Article 1 (Enforcement Date)
This Decree shall enter into force three month after the date of its promulgation.
Article 2 (Transitional Measures concerning Exemption from Obligation to Guarantee Payment of Considerations of Construction Subcontracts Following Credit Rating)
Notwithstanding the amended provisions of Article 8 (1) 2, the previous provisions shall apply to the exemption from the obligation to guarantee the payment of considerations of construction subcontracts related to entrustment of a construction project under a contract concluded before this Decree enters into force [including cases where the details of a concluded contract are amended or renewed (including the renewal of an annual contract of a long-term continuing contract for construction under Article 13-2 (3) of the Act)].
ADDENDA <Presidential Decree No. 31222, Dec. 8, 2020>
Article 1 (Enforcement Date)
This Decree shall enter into force on December 10, 2020.
Articles 2 and 3 Omitted.
ADDENDUM <Presidential Decree No. 31380, Jan. 5, 2021>
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
ADDENDA <Presidential Decree No. 31391, Jan. 12, 2021>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Applicability to Criteria for Imposition of Penalty Points)
| (1) | The amended provisions of subparagraph 3 (a) through (d) of attached Table 3 shall also apply where the computation of cumulative points has not been completed as at the time this Decree enters into force (excluding where an appeal procedure under the proviso of Article 25-4 (1) is in progress) for a violation committed before this Decree enters into force. |
| (2) | Notwithstanding paragraph (1), the reduction points shall be granted to special educational courses on subcontracting completed by a prime contractor, commendations to the prime contractor as an exemplary company in subcontracting transactions awarded by the Chairperson of the Fair Trade Commission or the head of the relevant administrative agency, and electronic tenders conducted by the prime contractor before this Decree enters into force, pursuant to subparagraph 3 (a) (ii), (iii), and (v) of the previous attached Table 3. |
| (3) | Notwithstanding paragraph (1), the previous provisions shall apply where the application of the previous provisions to matters that meet the reduction requirements before this Decree enters into force is more favorable to a prime contractor than the application of the amended provisions of subparagraph 3 (a) (i), (ii), (vi), and (vii) and (b) (i) of attached Table 3. |
Article 3 (Applicability to Consultation on Adjustment of Subcontract Prices of Small and Medium Enterprise Cooperative)
The amended provisions of Article 9-2 shall also apply to subcontracts concluded before this Decree enters into force. Article 4 (Transitional Measure concerning Scope of Small and Medium Entrepreneurs)
Notwithstanding the amended provisions of Article 2 (4), the previous provisions shall apply to a subcontract concluded before this Decree enters into force (excluding where the contract is renewed or its terms and conditions are amended after this Decree enters into force).
ADDENDA <Presidential Decree No. 32274, Dec. 28, 2021>
Article 1 (Enforcement Date)
This Decree shall enter into force on December 30, 2021.
Articles 2 through 14 Omitted.
ADDENDUM <Presidential Decree No. 32443, Feb. 15, 2022>
This Decree shall enter into force on February 18, 2022.
ADDENDUM <Presidential Decree No. 32528, Mar. 8, 2022>
This Decree shall enter into force on the date of its promulgation.
ADDENDUM <Presidential Decree No. 32798, Jul. 11, 2022>
This Decree shall enter into force on July 12, 2022: Provided, That the amended provisions of Article 6 (1) shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 33202, Jan. 3, 2023>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 12, 2023.
Article 2 (Applicability to Delaying Payment Deadline for Penalty Surcharges and Payment in Installments)
The amended provisions of Article 13-2 (1) shall also apply where the payment of penalty surcharges is notified before this Decree enters into force and the date an application for delaying the payment deadline for penalty surcharges or for paying them in installments is filed within 30 days from the date of receipt of such notification. Article 3 (Applicability to Criteria for Imposition of Penalty Points)
| (1) | The amended provisions of subparagraph 1 (g) and (h) of attached Table 3 and subparagraph 3 (a) (ix) and (x) and (b) (i) of that Table shall also apply where the calculation of cumulative points is not completed with regard to violations committed before this Decree enters into force (excluding where a petition of dissatisfaction is filed under the proviso of Article 25-4 (1) of the Act) as at the time this Decree enters into force. |
| (2) | Notwithstanding the amended provisions of subparagraph 1 (f) of attached Table 3, the previous provisions shall apply to the calculation of the percentage of bidding information to be disclosed with regard to construction work ordered before this Decree enters into force. |
ADDENDUM <Presidential Decree No. 33321, Mar. 7, 2023>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 33359, Mar. 28, 2023>
Article 1 (Enforcement Date)
This Decree shall enter into force on April 14, 2023.
Article 2 Omitted.
ADDENDA <Presidential Decree No. 33770, Sep. 26, 2023>
Article 1 (Enforcement Date)
This Decree shall enter into force on October 4, 2023: Provided, That the amended provisions of Articles 6-6, 6-7, 7-5, and 9-2, attached Tables 1 and 1-2, and subparagraph 1 (c) (v) and (vi) of attached Table 5 shall enter into force on the date of the promulgation. Article 2 (Applicability to Cooperatives' Adjustment of Subcontract Considerations)
The amended provisions of Article 9-2 (7) through (9) shall also apply where a cooperative receives an application for adjustment of subcontract consideration from a subcontractor before the enforcement date prescribed in the proviso of Article 1 of the Addenda.