The Fair Trade Commission (KFTC) is set to assess the implementation of the subcontract payment disclosure system and linkage system for large business groups.
On May 21, the KFTC announced it will hold a briefing at the DMC Tower for representatives from 102 designated business groups regarding the 'Subcontract Payment Disclosure System and Linkage System.'
The briefing will cover the expansion of the application of the subcontract payment linkage system and the prohibition of unlawful activities.
According to Article 13-3 of the Act on Fair Transactions in Subcontracting, primary contractors within designated business groups are required to disclose information biannually via the electronic disclosure system (DART). This includes payment amounts by payment method and period, as well as details regarding dispute resolution bodies related to subcontract payments.
The subcontract payment disclosure system was introduced to transparently reveal the status of subcontract payments in the market, encouraging primary contractors to improve their payment practices voluntarily. This system has been in effect since January 2023 to facilitate smoother negotiations between subcontractors and primary contractors based on disclosed information.
During the briefing, the KFTC will provide detailed explanations of the disclosure targets, procedures, and important considerations to assist companies in understanding the system. Additionally, training will be conducted to prevent recurrence of issues identified during disclosure checks, such as false or delayed disclosures, simple omissions, and errors.
Furthermore, the KFTC will also provide guidance on the linkage system following the subcontract payment disclosure system. Since the formal implementation of the subcontract payment linkage system in October 2023, the KFTC has been continuously supporting the establishment of a linkage culture in transaction sites. The briefing will outline the overview of the linkage system, implementation procedures, and key amendments to the law.
A KFTC official stated, "We will continue to monitor the overall operation of the subcontract payment disclosure system and linkage system to ensure they are faithfully implemented in the field. We plan to promote various support activities, including holding briefings and providing materials."
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.