Fair Trade Commission Operates 'Unfair Subcontracting Report Center'... Prioritizes Payment Delays Ahead of Lunar New Year

[Sejong=Asia Economy Reporter Joo Sang-don] The Fair Trade Commission will operate the 'Unfair Subcontracting Report Center' from the 21st until February 10, 2021 (52 days) to ensure that small and medium subcontracting companies receive payments on time ahead of the Lunar New Year holiday next year.

An official from the Fair Trade Commission explained, "Around the Lunar New Year holiday, the demand for funds increases sharply, and if small and medium enterprises do not receive subcontracting payments on time, there is a high risk that they will face management difficulties due to financial distress," adding, "Therefore, the Unfair Subcontracting Report Center will be established and operated at 10 locations across 5 regions nationwide."

Earlier, ahead of this year's Lunar New Year, a total of 359 cases amounting to 31.1 billion KRW were paid through the report center, and during Chuseok, a total of 164 cases amounting to 25.5 billion KRW were paid.

The Fair Trade Commission plans to handle cases received at the report center with a focus on early payment of subcontracting fees, processing them as quickly as possible, unlike the usual complaint handling methods.

Investigations into legal violations will proceed according to the usual case handling procedures, but efforts will be made to encourage the primary contractors to voluntarily correct issues or reach agreements between parties promptly so that cases can be resolved quickly before the Lunar New Year holiday. In particular, cases requiring urgent handling, such as subcontractors facing bankruptcy risks, will be prioritized.

In addition, the Fair Trade Commission plans to request major economic organizations such as the Korea Chamber of Commerce and Industry to encourage their member companies to pay subcontracting fees on time before the Lunar New Year holiday. It will also request major companies in each jurisdiction to pay subcontracting fees on time through local offices.

This content was produced with the assistance of AI translation services.