When Receiving Technical Data from Subcontractors, Fines Imposed if Non-Disclosure Agreement Not Signed

[Sejong=Asia Economy Reporter Kwon Haeyoung] Starting February next year, if a prime contractor does not sign a confidentiality agreement when receiving technical data from a subcontractor (supplier), they may be subject to fines. This measure aims to prevent large corporations from stealing technology from small and medium-sized enterprises.

The Fair Trade Commission announced on the 22nd that it will hold an administrative notice period from the 23rd until December 12 for the "Amendment to the Notice on Criteria for Imposing Fines on Businesses Violating the Subcontracting Act."

The Fair Trade Commission prepared the amendment following the revision of the Subcontracting Act by the National Assembly in July, which made signing confidentiality agreements mandatory when providing technical data. The amendment stipulates the criteria for imposing fines on prime contractors who violate the obligation to sign confidentiality agreements.

If a confidentiality agreement is not signed, a medium score (2 points) will be assigned in the detailed evaluation score according to the type of violation.

The Fair Trade Commission plans to finalize the amendment after collecting opinions from stakeholders and passing a plenary session resolution, and to implement it from February 18 next year.

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