The real estate supply business operator Neuron M&D faced sanctions from the Fair Trade Commission for setting 'unreasonable special contracts' while entrusting the off-street sales tasks to a contractor.
The Fair Trade Commission announced on the 7th that it has decided to impose corrective orders on Neuron M&D for violating the subcontracting law (Act on the Fairness of Subcontracting Transactions).
According to the Fair Trade Commission's investigation, Neuron M&D entrusted the sales of the 'Luca 831 Office Room' located in Gangnam, Seoul, to a contractor from March 2022 until the sales completion. Neuron M&D was required to issue a written document that included signatures or seals from both parties before the contractor began performing the services. However, the document was delayed and issued only in May 2022.
In addition, in the entrustment agreement issued in May 2022, a clause was established stating that if the contractor 'acts aggressively or incites disputes, the contract will be immediately terminated, and any unpaid subcontracting payments will not be made.' Neuron M&D did not pay 399.2 million won to the contractor who was terminated in June 2022 under this clause.
The Fair Trade Commission stated, 'We not only had the procedural defect of not issuing the document corrected, but also reviewed the content of the delayed document to detect unreasonable special contracts that excessively increased the liability for damages of the contractor,' and added, 'We will continue to monitor and enforce strict laws against unfair subcontracting transactions, including service entrustments.'