Resolving National Contract Disputes Through Mediation Before Litigation

The Ministry of Economy and Finance announced on September 30, 2025, that it held an information session on the National Contract Dispute Mediation System in cooperation with the Korea Federation of SMEs. The event aimed to promote a fair national contract culture and support the protection of rights for small and medium-sized enterprises (SMEs).

The session targeted small goods manufacturing companies to encourage active use of the National Contract Dispute Mediation System. Customized one-on-one on-site consulting was provided to five companies experiencing difficulties due to disputes with contracting agencies, and some disputes were accepted for mediation requests on the spot.

The National Contract Dispute Mediation System offers a streamlined dispute resolution process that reduces both time and cost burdens for companies, serving as an alternative to complex litigation procedures.

The number of mediation requests under the National Contract Dispute Mediation System has been increasing each year. The annual number of requests rose from 25 cases in 2020 to 46 cases in 2023 and 53 cases in 2024. The mediation acceptance rate for committee proposals last year was also 46.2%.

Next month, the government plans to hold a series of additional information sessions and on-site consulting for procurement companies in various sectors, including the Korea Specialty Contractors Association and the Korea Electrical Contractors Association.

To enhance prompt dispute resolution and the efficiency of mediation, the government will make the "prior objection requirement"-which mandates that companies must file an objection with the contracting agency before submitting a mediation request to the committee-optional rather than mandatory. The number of committee members will also be increased from the current 15 to up to 30 as part of ongoing system improvements.

The Ministry of Economy and Finance stated, "We will strive to minimize damage resulting from national contract disputes in order to support innovation and stable growth for public procurement companies."

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