Fair Trade Commission Conducts On-Site Inspection of Subcontract Delivery Price Adjustment Negotiations... Operates Reporting Center and Adds Written Survey

Addressing Challenges Faced by Supply Contractors Unable to Adjust Delivery Prices Despite Rising Raw Material Costs

[Sejong=Asia Economy Reporter Joo Sang-don] The Fair Trade Commission announced on the 29th that it will closely inspect the actual conditions of delivery price adjustment negotiations due to rising supply costs and take action against companies suspected of violating the law.

A Fair Trade Commission official explained, "Since COVID-19, demand recovery due to global economic stimulus measures and the impact of abnormal weather have caused a sharp rise in prices of major raw materials such as iron ore, but delivery price adjustments have not been smoothly carried out, causing many suppliers to face difficulties. In particular, when suppliers are caught between large corporations supplying materials and the original contractors, it is highly likely that price negotiations are difficult with both sides."

First, the Fair Trade Commission plans to temporarily expand the existing 'Unfair Subcontracting Report Center' and operate a 'Delivery Price Adjustment Report Center' from September 1 to November 30, actively promoting and counseling to encourage delivery price adjustment negotiations.

Additionally, during the 2021 subcontracting transaction written survey, an additional questionnaire will be distributed to 90,000 suppliers to closely examine the utilization status and effectiveness of the delivery price adjustment negotiation system.

Based on reports through the report center and the results of the actual condition inspection, companies suspected of violating the law, such as refusing adjustment negotiations without justifiable reasons, will be subject to on-site investigations and strict measures.

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