Fair Trade Commission issues corrective order to AidioTech for 'subcontract payment nonpayment'

[Image source=Yonhap News]

Idiotec, which failed to pay subcontractors for services rendered, has been sanctioned by the Fair Trade Commission.

On the 20th, the Fair Trade Commission announced that it imposed corrective orders on Idiotec for violating the "Act on the Fairness of Subcontract Transactions."

According to the Fair Trade Commission, Idiotec, a software development company, subcontracted the diagnosis of security vulnerabilities to a subcontractor while carrying out the "Government24 Customized Linked Service Construction Project" commissioned by the government in November 2021.

The purchase order used in this process lacked essential information such as a signed seal, the date of subcontracting, the timing and location of service provision, and the payment deadline.

Despite the subcontractor completing the service project normally in January 2022, Idiotec did not pay the 38.5 million KRW owed.

The Fair Trade Commission imposed orders to prevent recurrence and to pay the outstanding amount for Idiotec’s violation of the written issuance obligation and non-payment of subcontracting fees.

The Fair Trade Commission stated, "We sanctioned the principal company for using its superior bargaining position to withhold subcontract payments for an extended period," and added, "We will continue to enforce the law strictly to establish a fair subcontract transaction order."

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