Unfair Contracts in International Conferences to Disappear... Government Introduces Standard Contract Form

International Conference Services Conducted Through 'Fixed Total Amount Contract'

The Ministry of Culture, Sports and Tourism and the Korea Tourism Organization announced on the 7th that they will introduce and implement the 'Standard Contract for International Conference Service Sector' starting from the 8th. The international conference service industry has long been plagued by unfair practices such as unjust contracts and post-settlement adjustments. Although fair trade guidelines have been established and a Fair Trade Support Center has been set up, more fundamental institutional reinforcement measures were required. The Ministry of Culture, Sports and Tourism collected and analyzed sixty contract documents from the public sector and fourteen from the private sector since November 2020, reflecting the unique characteristics of international conference services to derive the standard contract. After reviews by stakeholders and experts from industry, government, academia, and research, legal and labor consultations, and a National Assembly public hearing, the standard contract was finally established.

According to the standard contract, international conference services are conducted under a 'fixed total amount contract' with a confirmed scope of work and corresponding total amount. Contract terms cannot be arbitrarily changed at the request of one party, and as a principle, post-settlement adjustments cannot be made on the entire confirmed contract amount. In exceptional cases, the ordering institution bears various costs incurred for settlement. The ordering institution cannot require the contracting party to bear funds through sponsorships, donations, or other means for expenditure items listed in the calculation details. In cases where the contract relationship ends due to force majeure reasons such as epidemics or infectious diseases, clear standards and procedures for calculating and paying damages must be followed.

The Ministry of Culture, Sports and Tourism will produce and distribute explanatory materials and practical operation guidelines to promote the use of the standard contract. Additionally, through organizations such as the Korea MICE Industry Development Association, they plan to actively promote the guidance and implementation of the standard contract.

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