It was found that more than 500 commissioning corporations are suspected of unfair transactions, including nonpayment of supply prices and violations of the obligation to issue documents. After the government investigation, these corporations belatedly paid a total of 9.2 billion won in supply prices to contracted corporations.
The Ministry of SMEs and Startups announced on the 30th the results of the "2024 regular fact-finding survey on contracted–commissioned transactions," conducted on 3,000 commissioning corporations and 12,000 contracted corporations.
The Ministry of SMEs and Startups (MSS) conducts an annual fact-finding survey under the Act on the Promotion of Win-Win Cooperation Between Large Enterprises and SMEs (win-win cooperation act) to prevent unfair conduct arising in the process of contracted–commissioned transactions and to improve transaction practices.
This survey identified 508 corporations suspected of violating the win-win cooperation act. The regional offices of the Ministry of SMEs and Startups in charge of on-site inspections recommended voluntary corrections to the relevant commissioning corporations so that the harmed contracted corporations could receive payment.
Accordingly, 479 commissioning corporations took voluntary corrective measures, including paying contracted corporations the total 9.2 billion won in supply prices that had not been paid.
Despite the administrative guidance of the Ministry of SMEs and Startups (MSS), 17 corporations that did not pay the supply prices and delay interest were subject to administrative measures, including a request for improvement under the win-win cooperation act.
If those corporations do not comply with the request for improvement, the plan is to disclose their names and the fact of the legal violation. Authorities also plan a strict response, including asking the Korea Fair Trade Commission to review whether the Fair Transactions in Subcontracting Act was violated and to take follow-up measures.
The authorities also demanded improvements from 12 corporations that failed to comply with the obligation to issue documents such as agreements and goods receipts. Of these, 11 that did not issue agreements within the prescribed time were fined.
Lee Eun-cheong, director general of the Win-Win Cooperation Policy Bureau at the Ministry of SMEs and Startups (MSS), said, "Small and midsize enterprises sometimes face difficulties reporting unfair transaction conduct due to concerns about being cut off from transactions with commissioning corporations," and added, "We will push for improvements for violating corporations through regular fact-finding surveys and work to establish a fair culture of contracted–commissioned transactions."