Up to 70% Reduction in Penalties for Voluntary Correction of Subcontracting Law Violations

Amendment to Enforcement Decree Passed at Cabinet Meeting

Fair Trade Commission Chairman Han Ki-jung is responding to lawmakers' questions at the National Assembly's Political Affairs Committee audit held on the 16th. Photo by Hyunmin Kim kimhyun81@

If a violator of the Subcontracting Act voluntarily corrects the violation, the fine can be reduced by up to 70%.

The Fair Trade Commission announced that the amendment to the Enforcement Decree of the "Act on the Fairness of Subcontracting Transactions (Subcontracting Act)" containing this provision passed the Cabinet meeting on the 21st.

The amendment expands the reduction rate of fines up to 70% if the violator voluntarily corrects the violation and cooperates with investigation and deliberation, enhancing the effectiveness of the voluntary correction system and enabling prompt relief for the affected companies.

Along with this, a procedure was established for cases where dispute mediation and litigation in the subcontracting field proceed simultaneously, requiring the Dispute Mediation Council to notify the competent court of the mediation application.

If the notified competent court suspends the litigation procedure, the Dispute Mediation Council proceeds with the mediation process, and once the mediation result is reached, it must immediately inform the competent court of the outcome.

The Fair Trade Commission expects that "this will induce prompt voluntary correction by violators of the Subcontracting Act and activate dispute mediation, helping to provide relief to small and medium subcontractors." The amendment will be promulgated and enforced immediately after the President's approval.