The Fair Trade Commission said on the 28th that it created its first standard subcontracting contracts for the electroplating industry and the secondary battery manufacturing industry. The aim is to make clear from the contracting stage provisions to prevent technology leaks and industrial accidents in sectors that handle hazardous substances.
The newly established contracts include basic protection clauses such as standards for paying subcontract prices, a ban on unfair order cancellations, and price adjustments when costs change. They also reflect industry specifics. For secondary battery manufacturing, they require contracts to specify security pledges for entrants and leavers, access control to protected areas, and security screening procedures, while for electroplating, they add language that responsibility arises if standards for handling hazardous chemicals are violated.
The existing 14 industries were also revised to reflect the latest laws and transaction realities. In light of repeated disputes such as delays in reflecting cost increases and coercion to purchase certain goods, a principle was added to the contracts that, when a dispute occurs, the prime contractor must prove the appropriateness of the transaction terms.
For food and beverage manufacturing, only materials that meet Ministry of Food and Drug Safety standards may be used when using recycled plastic. In engineering, the criteria for ownership of materials and supplies and handling any remaining quantities were clarified. For the landscaping and planting construction business, a clause was included exempting liability for damages in maintenance after project completion if there is no intent or negligence.
The biggest change in this revision is the mandatory inclusion of an "industrial accident prevention clause" in the standard contracts across all 59 industries. The contracts clearly stipulate safety obligations such as standards for stopping work and evacuating, emergency measures in the event of fires or accidents, and provision of protective equipment. The Fair Trade Commission explained, "In light of the reality of repeated industrial accidents, the intent is to strengthen safety management from the contracting stage."
The Fair Trade Commission plans to spread the standard contracts in cooperation with business organizations and to provide guidance on key details on the websites of the Korea Chamber of Commerce & Industry (KORCHAM) and the Korea Federation of Small and Medium Enterprises. An official at the Fair Trade Commission said, "The rights of subcontractors with weaker transaction status will be protected, and rational contracting practices suited to industry characteristics will spread."