South Korea revises subcontracting decree to tighten safeguards, penalties
( July 28, 2026, 02:48 GMT | Official Statement) -- MLex Summary: South Korea’s cabinet has approved revisions to the enforcement decree of the Fair Transactions in Subcontracting Act that will broaden price-indexation rules, which adjust subcontract payments when input costs change, to cover major energy costs and require payment guarantees for nearly all construction subcontracting deals. The Korea Fair Trade Commission said Tuesday the amendments will also allow affected subcontractors to receive whistleblower rewards when they first submit evidence of violations involving other subcontractors, while increasing penalty-point reductions for companies that use standard subcontracting agreements in all transactions. The maximum surcharge enhancement for repeat violations will rise from 50 percent to 100 percent. Most changes will take effect Aug. 11, while the higher surcharge-enhancement cap will apply from the date of promulgation.Statement is attached (in Korean). ...
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