[Law Firm Now] Pacific Successfully Holds Seminar on "Subcontracting Act Enforcement Trends and Prospects"

by Choi Sukjin

Published 17 Sep.2025 10:25(KST)

The seminar on the "Act on the Fairness of Subcontracting Transactions" (Subcontracting Act) hosted by Pacific Law Firm (Managing Partner Lee Junki) concluded successfully.

Pacific Law Firm announced on the 17th that it had successfully held a client seminar on the theme of "Subcontracting Act Enforcement Trends and Prospects" at its Seoul office in Jongno-gu, Seoul, on the 15th.

At the seminar on "Trends and Prospects of Subcontracting Act Enforcement" held on the 15th at the Seoul office of the law firm Bae, Kim & Lee in Jongno-gu, Seoul, over 120 corporate officials listened attentively. Bae, Kim & Lee Law Firm

This seminar presented the direction and outlook for the enforcement of the Subcontracting Act in line with the new government's economic policies, and provided strategies for businesses to respond to the implementation of the revised Subcontracting Act and the introduction and expansion of protection systems for subcontractors, attracting significant interest from corporate officials.

The seminar, which began with opening remarks by attorney Kim Honggi, head of Pacific Law Firm's Fair Trade Group, was divided into four sessions: recent enforcement trends of the Subcontracting Act; the impact and response strategies following the revised Subcontracting Act; the introduction of new systems for enforcement and future prospects; and a Q&A session.

In the first session, attorney Park Sungjin explained the direction of strengthened regulations in the subcontracting sector, based on policy announcements and investigation trends since the inauguration of the new government.

Attorney Park emphasized, "It is expected that the Fair Trade Commission's ex officio investigations and on-site inspections will be further strengthened in the future," highlighting the need for companies to proactively review their compliance systems related to technology misappropriation and the supply price linkage system, which are currently the focus of regulatory authorities.

Attorney Park also stated, "Government intervention and its role in the subcontracting sector are expected to be further strengthened," and added, "It is important to respond more proactively to policies of the Ministry of SMEs and Startups, which is responsible for mandatory accusation deliberations, among other things."

In the second session, attorney Kwon Youngjun gave a presentation on "The Legal Effect of Unfair Special Terms: Impact and Response Strategies Following the Revised Subcontracting Act."

Attorney Kwon explained, "If a clause is recognized as an unfair special term under the Subcontracting Act, its legal effect is not acknowledged. Therefore, it cannot be ruled out that the courts may assess whether a clause constitutes an unfair special term differently than before. It is highly likely that the courts will use criteria similar to those applied under the State Contracts Act or the Act on the Regulation of Terms and Conditions."

Kwon further noted, "As a result, there may be a gap between the judgments of the Fair Trade Commission and the courts," emphasizing the need for careful responses to this issue.

In the third session, attorney Son Seungho discussed the introduction of systems for enforcing the Subcontracting Act and future prospects, including the introduction of the private party injunction system, the applicability of the Subcontracting Act to overseas subsidiaries, and discussions on expanding the price linkage system. Attorney Lee Sanghyun also presented on the discussions and progress regarding the introduction of Korean-style discovery.

Attorney Son stated, "With the introduction of the private party injunction system, disputes could escalate into legal battles from the early stages, and the possibility of prohibitory or suspension injunctions means that risks of reputational damage and business delays can materialize immediately."

Son also emphasized, "As discussions on enforcing the Subcontracting Act against overseas subsidiaries of domestic companies become more active and concrete, it is more necessary than ever to reassess the use of overseas subsidiaries. There is a need to quickly review and improve the overall risk management system, including strengthening internal compliance management and preparing response manuals in advance."

Attorney Lee advised, "Although the scope may vary depending on the court's direction in individual cases, if all the proposed amendments to the Civil Procedure Act, Patent Act, and Win-Win Cooperation Act are passed, the scope of evidence to be disclosed will significantly expand. Therefore, it is necessary to improve the management system for internal documents and trade secrets."

In the final Q&A session, senior advisor Ji Yoonkoo, who has extensive practical experience in the subcontracting field, provided in-depth solutions to issues based on current industry trends.