"Subcontracting Power Abuse" NDS Faces Heavy Fine from the Fair Trade Commission

Violation of Obligation to Issue Written Documents

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NDS has been sanctioned by the Fair Trade Commission for failing to issue written documents such as contracts in a timely manner when entering into subcontracting agreements.

On the 21st, the Fair Trade Commission announced that it imposed corrective orders and a fine of 38 million KRW on NDS, a business engaged in computer system integration consulting and construction services, for violating the Subcontracting Act.

According to the Fair Trade Commission, NDS was found to have issued subcontracting contract documents later than the legally prescribed deadline for a total of 347 transactions while outsourcing information system construction and maintenance services to 199 subcontractors from January 2020 to June 2022.

Accordingly, the Fair Trade Commission ordered NDS to prevent recurrence of similar acts in the future and imposed a fine.

The Fair Trade Commission stated, "We will strengthen monitoring of violations of the obligation to issue written documents that worsen the position of subcontractors in subcontracting transactions, and impose strict sanctions when violations are detected."

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