When Receiving Technical Data from Subcontractors, Mandatory Preservation of Non-Disclosure Agreements

[Sejong=Asia Economy Reporter Kwon Haeyoung] The original contractor who receives technical data from a subcontractor must enter into a confidentiality agreement and must preserve the contract.

The Fair Trade Commission announced on the 14th that it will publicly announce the amendment to the Enforcement Decree of the Subcontracting Act, which includes this content, until the 25th of next month. This is due to the amendment of the Subcontracting Act, which will be enforced in February next year, making it mandatory for the original contractor to conclude a confidentiality agreement.

The amendment to the Enforcement Decree adds confidentiality agreements to the documents that the original contractor must preserve and stipulates the items that must be included in the confidentiality agreement. The confidentiality agreement must include the name and scope of the technical data, the list of executives and employees who will hold the data, confidentiality obligations, prohibition of use for purposes other than the intended one, matters related to compensation in case of breach of obligations, the period of use of the technical data, the method of return (or disposal), and the date of return (or disposal).

Additionally, the amendment requires the preservation of supporting documents related to the criteria and details of payment calculation. The purpose is to prevent unfair payment decisions and to use them as evidence in case of disputes.

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