Fair Trade Commission at the Government Complex in Sejong City. [Photo by Yoo Dae-gil]
To prevent unfair subcontracting practices in the manufacturing, service, and construction sectors, South Korea's Fair Trade Commission (FTC) has initiated a comprehensive survey.
On June 8, the FTC announced it will conduct a survey of 100,000 businesses regarding subcontracting transactions that took place last year.
The survey will target 10,000 primary contractors and 90,000 subcontractors across the manufacturing, service, and construction industries. The primary contractors will be selected from the top 15,000 companies by revenue, including 7,000 from manufacturing, 2,500 from services, and 500 from construction. The subcontractors will be drawn from the list of subcontracting companies submitted by the primary contractors, comprising 63,000 from manufacturing, 22,500 from services, and 4,500 from construction.
The survey period for primary contractors will run from June 8 to July 13, 2026, while subcontractors will be surveyed from August 11 to October 2, with possible extensions if necessary.
Key survey topics include: the issuance of contracts and use of standard subcontracting agreements, status of subcontracting payments and deadlines, implementation of payment linkage systems, requests for and use of technical data, and improvements in trading practices. The FTC plans to thoroughly examine the overall state of subcontracting transactions in major industries.
This year, the FTC will also expand its safety management burden survey, previously conducted only for subcontractors, to include primary contractors. This change comes in response to ongoing debates over responsibility for safety management costs in construction sites following the implementation of the Serious Accident Punishment Act.
Additionally, the survey will investigate potential disadvantages stemming from contracts that designate overseas arbitration venues, as well as experiences related to overseas construction reporting and disputes.
To provide a more detailed analysis of subcontracting payment practices, the FTC plans to refine the payment deadline intervals. The method for reporting financial conditions and subcontracting amounts will shift from a range-based approach to a direct input method to enhance statistical accuracy.
The introduction of a payment linkage system for subcontracting in 2023 was expected to alleviate the burden on small partner companies due to soaring raw material prices; however, disputes over exceptions and contract methods have persisted. The FTC is expected to assess the system's implementation and identify areas for improvement through this survey.
The survey will be conducted online, with targeted companies receiving notification letters to access and submit their responses via the FTC's website. During the survey period, the FTC will provide prompt assistance for any inquiries or issues through a centralized consultation center and one-on-one social media support.
The results of this survey are scheduled to be published at the end of the year and will serve as foundational data for monitoring legal violations and improving regulations. All statistical data derived from the survey will be registered without omission in the National Statistical Portal (KOSIS) to support related policies and academic research.
An FTC official stated, "The results of this survey will form the basis for enforcing laws to create a fair subcontracting environment, and we urge active participation from both primary and subcontractors."
On June 8, the FTC announced it will conduct a survey of 100,000 businesses regarding subcontracting transactions that took place last year.
The survey will target 10,000 primary contractors and 90,000 subcontractors across the manufacturing, service, and construction industries. The primary contractors will be selected from the top 15,000 companies by revenue, including 7,000 from manufacturing, 2,500 from services, and 500 from construction. The subcontractors will be drawn from the list of subcontracting companies submitted by the primary contractors, comprising 63,000 from manufacturing, 22,500 from services, and 4,500 from construction.
The survey period for primary contractors will run from June 8 to July 13, 2026, while subcontractors will be surveyed from August 11 to October 2, with possible extensions if necessary.
Key survey topics include: the issuance of contracts and use of standard subcontracting agreements, status of subcontracting payments and deadlines, implementation of payment linkage systems, requests for and use of technical data, and improvements in trading practices. The FTC plans to thoroughly examine the overall state of subcontracting transactions in major industries.
This year, the FTC will also expand its safety management burden survey, previously conducted only for subcontractors, to include primary contractors. This change comes in response to ongoing debates over responsibility for safety management costs in construction sites following the implementation of the Serious Accident Punishment Act.
Additionally, the survey will investigate potential disadvantages stemming from contracts that designate overseas arbitration venues, as well as experiences related to overseas construction reporting and disputes.
To provide a more detailed analysis of subcontracting payment practices, the FTC plans to refine the payment deadline intervals. The method for reporting financial conditions and subcontracting amounts will shift from a range-based approach to a direct input method to enhance statistical accuracy.
The introduction of a payment linkage system for subcontracting in 2023 was expected to alleviate the burden on small partner companies due to soaring raw material prices; however, disputes over exceptions and contract methods have persisted. The FTC is expected to assess the system's implementation and identify areas for improvement through this survey.
The survey will be conducted online, with targeted companies receiving notification letters to access and submit their responses via the FTC's website. During the survey period, the FTC will provide prompt assistance for any inquiries or issues through a centralized consultation center and one-on-one social media support.
The results of this survey are scheduled to be published at the end of the year and will serve as foundational data for monitoring legal violations and improving regulations. All statistical data derived from the survey will be registered without omission in the National Statistical Portal (KOSIS) to support related policies and academic research.
An FTC official stated, "The results of this survey will form the basis for enforcing laws to create a fair subcontracting environment, and we urge active participation from both primary and subcontractors."
* This article has been translated by AI.
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