- Supporting prompt action on overdue subcontract payments and early payment before the holiday -
August 4, 2026
The Korea Fair Trade Commission (KFTC, Chairperson Biung-Ghi Ju) will establish and operate an "Unfair Subcontracting Practices Report Center" for 50 days, from August 5 to September 23, 2026, ahead of this year's Chuseok holiday, to help small and medium-sized subcontractors receive payments on time.
Given that demand for funds among small and medium-sized enterprises rises sharply around Chuseok due to bonus payments and other seasonal expenses, the KFTC plans to encourage timely payment of subcontract fees before the holiday. For overdue payments, the Commission will actively promote voluntary correction by prime contractors or agreements between the parties, while conducting on-site investigations as needed to swiftly resolve cases.
The Report Center will be established and operated at a total of 12 locations across five regions nationwide: the Seoul metropolitan area (7 offices), Daejeon-Chungcheong region (2 offices), Busan-Gyeongnam region (1 office), Gwangju-Jeolla region (1 office), and Daegu-Gyeongbuk region (1 office), which includes the addition of two Gyeongin Office locations opened in March this year. The Center will be set up not only at KFTC headquarters and regional offices but also at the Subcontract Dispute Mediation Committee, making it easier for small and medium-sized subcontractors to file reports. Reports can be submitted by mail, fax, the KFTC website (http://www.ftc.go.kr), or phone consultation.
As a result, complainants can receive assistance regarding overdue payments within a relatively short time simply through a phone consultation, while respondents will also have the opportunity to voluntarily correct the issue—such as by paying overdue subcontract fees—before the case is formally processed.
In addition, the KFTC plans to request major economic organizations—including the Korea Chamber of Commerce and Industry, Korea Enterprises Federation, the Federation of Korean Industries, Construction Association of Korea, Korea Automobile & Mobility Association, Korea Electronics Association, Korea Offshore & Shipbuilding Association, Korea Federation of Textile Industries, Federation of Middle Market Enterprises of Korea, and the Fair Competition Federation-to encourage their member companies to make timely subcontract payments before Chuseok. The Commission will also request cooperation from major companies to make early payments, wherever possible, on subcontract fees originally scheduled for disbursement after the holiday.
For reference, ahead of the last Lunar New Year holiday, the KFTC operated the Unfair Subcontracting Practices Report Center and took action to secure payment of a total of 182 cases of overdue subcontract fees, amounting to approximately KRW 23.2 billion. As a result, approximately KRW 3.4828 trillion in subcontract fees was paid early to 23,766 subcontractors before the Lunar New Year holiday.
Through the operation of the "Unfair Subcontracting Practices Report Center" over the next 50 days, the KFTC expects to encourage prime contractors to voluntarily correct overdue subcontract payments and make early payments before the holiday, thereby easing the financial strain on small and medium-sized enterprises and helping prevent violations of the Fair Transactions in Subcontracting Act by prime contractors.