In the future, contracts that unfairly shift expenses from the primary contractor to subcontractors will be legally invalid.
The Fair Trade Commission noted that the bill to amend the subcontracts law passed the National Assembly on the 13th.
The key point of the amendment is that even if the primary contractor establishes an unfavorable "unfair special provision" for subcontractors, it will not be legally recognized. Accordingly, even if the primary contractor enters into contracts that transfer additional expenses, such as those not included in the written contract or costs related to complaints and industrial accidents, to subcontractors, they cannot be enforced. The Fair Trade Commission expressed hope that by blocking the legal effects themselves, it can prevent the unfair special provisions.
Additionally, with this amendment, affected subcontractors can receive legal relief more quickly. Previously, subcontractors had to file damage claims against primary contractors through lawsuits, but the burden of proof was heavy and the process complicated, making it less effective. However, after the amendment is implemented, because unfair special provisions will automatically be invalidated, subcontractors can seek relief more simply through an "unjust enrichment claim lawsuit."
Along with this, the amendment also revised the regulations related to the obligation of document preservation. Under the previous law, both primary contractors and subcontractors were required to retain contract-related documents for at least three years, and violations could result in a penalty surcharge. However, the amendment changed it so that penalty surcharges will only be imposed for violations by primary contractors.
Meanwhile, on the same day, the National Assembly also passed the amendment to the "Consumer Cooperative Law" alongside the subcontract law amendment. According to the amendment, health and medical cooperatives will be required to disclose major management matters on their websites.
Health and medical cooperatives must disclose key management information, such as articles of incorporation, regulations, settlement of account reports, and board of directors activities, within four months of the settlement date. Violations will result in fines of up to 1 million won. This regulation will apply from the fiscal year 2026.
The Fair Trade Commission stated, "It is expected that strengthened management and supervision of health and medical cooperatives will enhance transparency and enable the prevention of consumer damage."