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Fair Trade & Subcontracting

Atlas Legal has provided legal services across the full range of fair trade and subcontracting regulations — including the Monopoly Regulation and Fair Trade Act (MRFTA), the Fair Transactions in Subcontracting Act (FTSA), and the Fair Transactions in Agency Business Act. Our track record includes responding to Korea Fair Trade Commission (KFTC) on-site investigations and submitting legal briefs, obtaining an injunction in a trade secret misappropriation case by a prime contractor against a subcontractor and leading to a settlement, and prevailing in a damages suit over an unjustified reduction of subcontracting payments.

Fair trade cases are inherently complex — KFTC administrative proceedings, criminal referrals, and civil damages claims often run simultaneously. Drawing on the Managing Partner’s background as a former prosecutor, we provide integrated coverage including criminal exposure risks. Our extensive experience in construction and manufacturing subcontracting disputes in the Incheon-Gyeonggi region means we understand the practical realities on the ground.

For unpaid subcontracting fees, we pursue provisional attachments and KFTC complaints in parallel to accelerate recovery. On the preventive side, we review subcontracting agreements, introduce standard form contracts, and build compliance programs to preempt surcharge risk before violations occur.

Services

KFTC Investigation Defense

Drafting written statements, coordinating the scope of document production, filing legal briefs, and representing clients at KFTC plenary and subcommittee hearings. Track record of surcharge reductions

Subcontracting Payment Claims

KFTC complaints, civil litigation, and provisional attachments for unpaid subcontracting fees, unjustified reductions, and forced promissory note payments. Treble damages claims under the Fair Transactions in Subcontracting Act

Surcharge & Order Appeals

Filing objections within 30 days of a KFTC surcharge or corrective order, and representing clients in administrative litigation (cancellation suits) before the Seoul High Court

Unfair Trade Practice Response

Rights protection and defense against abuse of superior bargaining position, exclusive dealing, unjust inducement of customers, and misappropriation of technical data

Agency & Franchise Disputes

KFTC complaints and damages claims for unfair practices under the Fair Transactions in Agency Business Act and the Fair Transactions in Franchise Business Act — including forced purchases, mandatory sales targets, and coerced economic benefits

Compliance Advisory

Building internal compliance programs to prevent MRFTA and FTSA violations, introducing standard form subcontracting agreements, reviewing contracts, and training responsible staff

When You Need a Fair Trade & Subcontracting Lawyer

  • You receive notice of a KFTC investigation: Specialist counsel must be engaged from the outset. Statements made during a KFTC investigation can affect subsequent criminal proceedings.
  • Subcontracting fees go unpaid: A KFTC complaint and provisional attachment should be pursued simultaneously. Indirect evidence such as KakaoTalk messages, emails, and tax invoices can establish the subcontracting relationship.
  • A prime contractor unjustifiably reduces subcontracting payments: This constitutes a violation of the Fair Transactions in Subcontracting Act, and the subcontractor may claim treble damages.
  • A surcharge or corrective order is issued: You may file an objection within 30 days of receiving notice, or bring an administrative cancellation suit before the Seoul High Court.
  • Unfair practices are imposed under an agency agreement: Forced purchases and mandatory sales targets are prohibited under the Fair Transactions in Agency Business Act. Retaliation for filing a KFTC complaint is also strictly prohibited.
  • A subcontracting agreement was made verbally without a written contract: Failure to issue a written contract is itself a violation of the Fair Transactions in Subcontracting Act. Actual transaction evidence can still support a payment claim.

Representative Matters

KFTC Investigation

KFTC on-site investigation — submitted legal briefs and argued favorable legal theory on behalf of the client

Trade Secret Misappropriation

Trade secret misappropriation by prime contractor — pursued an injunction and KFTC complaint in parallel, obtained a trade secret use prohibition injunction, and led the prime contractor to a settlement

Damages

Damages suit for unjustified reduction of subcontracting payments — proved that the prime contractor’s unilateral reduction violated the Fair Transactions in Subcontracting Act, obtaining a damages judgment

Mediation

Korea Fair Trade Mediation Agency mediation proceedings — resolved subcontracting and fair trade disputes quickly through pre-litigation mediation

Compliance

Fair trade compliance program for an Incheon manufacturer — standardized subcontracting agreements, established internal review procedures, and designed a staff training program