Fair Trade Commission Allows Private Sector to Propose and Amend Standard Subcontract Agreements

[Asia Economy Sejong=Reporter Dongwoo Lee] In the future, if a business operator or business association deems it necessary to create or revise a standard subcontract agreement, they can directly draft a revision proposal and request a review from the Fair Trade Commission.

On the 12th, the Fair Trade Commission announced that it will implement the revised "Act on the Fairness of Subcontract Transactions" (Subcontract Act) and its enforcement decree, which include these provisions, starting from today.

The standard subcontract agreement is a contract form created, distributed, and recommended by the Fair Trade Commission for each industry so that contracting parties can refer to it when drafting contracts to minimize legal violations. Previously, only the Fair Trade Commission had the authority to create or revise it, but this revision expands that authority to business operators as well.

According to the revised Subcontract Act, when a business operator or others request a review of a draft for creating or revising a standard subcontract agreement, the Fair Trade Commission must notify the review results within six months. Additionally, it has made it mandatory to notify the relevant parties in the transaction field in writing so that they can submit their opinions on the review subject.

The documents subject to preservation now include documents and statements related to the criteria for calculating payments. This will help prevent unfair payment decisions and can be used as evidence in case of disputes.

A Fair Trade Commission official stated, "Through the bottom-up creation and revision of standard subcontract agreements, unfair trade practices in the subcontracting sector will be more effectively prevented and improved."

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