Up to 70% Reduction in Fines for Voluntary Reporting of Subcontracting Law Violations

Preparation of Dispute Mediation Notification Procedure for Hydrogen Court
Fair Trade Commission to Announce Legislative Notice by the 18th of Next Month

[Image source=Yonhap News]

If a violator of the Subcontracting Act voluntarily corrects the violation and cooperates with the Fair Trade Commission's investigation and deliberation, the surcharge can be reduced by up to 70%.

On the 7th, the Fair Trade Commission announced the legislative notice of the "Enforcement Decree Amendment of the Act on the Fairness of Subcontracting Transactions (Subcontracting Act)" containing such content.

Under the current law, voluntary correction of violations (up to 50% reduction) and cooperation with investigation and deliberation (up to 20% reduction) only allowed a maximum surcharge reduction of 50%. After the amendment, the reduction rate will be expanded to up to 70%, enhancing the effectiveness of the voluntary correction system and enabling prompt relief for affected companies.

Additionally, when dispute mediation and litigation in the subcontracting field proceed simultaneously, a procedure will be established for the Dispute Mediation Committee to notify the competent court of the dispute mediation application details.

This notification procedure is stipulated in line with the purpose of the Subcontracting Act system, which allows litigation procedures to be suspended until mediation occurs based on the competent court's decision when dispute mediation and litigation overlap.

The Fair Trade Commission plans to complete the amendment within the first half of the year after fully collecting opinions from stakeholders and related ministries by the 18th of next month, and going through related legislative procedures such as review by the Ministry of Government Legislation.

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