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KFTC Closes Investigation Regarding Alleged Unfair Subcontracting Transactions Without Imposing Sanctions


Disputes that arise in subcontracting transactions often result in the subcontractor filing a complaint with the Korea Fair Trade Commission (the “KFTC”) accusing the contractor of violating the Fair Subcontracting Transactions Act.

Representing a construction company (the contractor) in the KFTC’s investigation regarding alleged unfair subcontracting transactions, Kim & Chang obtained the KFTC’s decision to close the investigation without imposing sanctions by successfully arguing that the subcontractors who had filed complaints with the KFTC lacked standing and that the statute of limitations for initiating an investigation had expired.

This case is significant as our firm successfully defended our client against an unfair price reduction and retaliatory conduct issues which could have become the subject of civil actions against the company.