South Korean Ministry of SMEs launches unfair trade survey

The Ministry of SMEs and Startups has announced the launch of the ‘2026 Regular Survey on Subcontracting and Consignment Transactions’ to combat unfair trade practices and establish a fair transaction order. The investigation will target a total of 15,000 companies, comprising 3,000 entrusting companies and 12,000 entrusted companies.

In a significant change from previous years, the scope of the investigation period has been expanded from six months to a full 12-month cycle. This adjustment aims to prevent omissions in sectors such as distribution, food, and construction, where transactions often concentrate in the second half of the year. Key inspection items include compliance with the supply price linkage system, issuance of written agreements, adherence to payment deadlines, unfair reduction or determination of supply prices, and improper requests for technical data.

The survey will proceed in three stages: analyzing the transaction status of the 3,000 entrusting companies, conducting surveys among the 12,000 entrusted companies regarding unfair practices, and performing on-site inspections of companies suspected of legal violations. Companies that voluntarily rectify damages by paying the full amount to the victimized party may be exempt from on-site inspections. Administrative actions, including requests for improvement, will be taken against companies found in violation of the Act on the Promotion of Mutually Beneficial Cooperation between Large and Small Enterprises.