Subcontracting laws contain many mandatory provisions. This area also requires business sensitivity and knowledge of the relevant industry and the subcontracted work. Based on the collective knowledge and experience of its professionals in this area, Yoon & Yang’s Antitrust & Compliance Practice counsels clients relating to all aspects of subcontracting, including the analysis of the Korea Fair Trade Commission’s (KFTC) enforcement trends, subcontracting-related compliance, responses to the KFTC’s investigations and deliberations, appeals from the KFTC’s decisions, and follow-up management related to penalty points.

Key Services

  • Advising clients on the establishment and implementation of compliance programs related to subcontracting
  • Representing clients in KOFAIR mediation
  • Responding to the KFTC’s investigations, including written investigations and on-site investigations, and representing clients in the KFTC’s deliberations
  • Representing clients in appeals challenging the KFTC dispositions and related civil litigation
  • Advising clients on follow-up management measures such as management of penalty points

Representative Cases

  • Unfair reduction of subcontract price and extortion of technology by a heavy machinery manufacturer (Company D)
  • Extortion of technology and unfair reduction of subcontract price by a chemical company (Company L)
  • Unfair determination of subcontract price involving a construction company (Company S) and an auto parts company (Company I)
  • Unfair cancelation of outsourcing by a marine engine company (Company S)
  • Non-payment of subcontract price involving an auto parts company (Company B) and an education company (Company C)
  • Failure to make advance payments by a machine tool company (Company H)
  • Management intervention by a fashion company (Company H)
  • Unfair special agreement of an IT company (Company D)
  • Legal advice for an affiliate of Corporate Group H, Company W, and a shipbuilding company on the establishment and implementation of compliance programs related to subcontracting
  • Legal advice for Company P, Company H, and Company D on the KFTC’s dispositions to impose penalty points and to restrict participation in bidding