When you do not receive payment for your delivery, instead of a civil lawsuit that takes a long time and incurs costs, utilizing the Subcontracting Act to file a report to the Fair Trade Commission or a dispute mediation application can be an efficient alternative. Especially if the other party is a large corporation, pressure such as fines and penalties can be more effective, and the strategy to secure court-delayed interest of up to 15.5% will be explained by Cheongchul Law Firm.

[Contents and Summary]

1. Introduction: Non-payment for deliveries, jumping straight into lawsuits is not the solution

2. If the other party is a corporation? The power of the 'Fair Trade Commission report' is scarier than civil lawsuits

3. Targets for reporting violations of the Subcontracting Act and benefits of delayed interest (15.5%)

4. Solution: Fair Trade Commission report vs mediation application, what is the right choice for me?

5. Conclusion: Cheongchul Law Firm protects your rights

When you do not receive payment for your delivery, instead of a civil lawsuit that takes a long time and incurs costs, utilizing the Subcontracting Act to file a report to the Fair Trade Commission or a dispute mediation application can be an efficient alternative. Especially if the other party is a large corporation, pressure such as fines and penalties can be more effective, and the strategy to secure court-delayed interest of up to 15.5% will be explained by Cheongchul Law Firm.

1. Introduction: Non-payment for deliveries, jumping straight into lawsuits is not the solution

Many individuals suffer from the stress of clients who delay payment with excuses like, "I will pay once the next tenant comes in". At this point, your first thought might be 'civil lawsuit', but Cheongchul does not recommend starting with a lawsuit. This is because lawsuits require a significant amount of time and money. If it’s a subcontracting relationship, a quicker and stronger solution than a lawsuit would be a 'report to the Fair Trade Commission' or a 'dispute mediation application'.

2. If the other party is a corporation? The power of the 'Fair Trade Commission report' is scarier than civil lawsuits

If the other party is a large or medium enterprise, the Fair Trade Commission investigation becomes a threat beyond just calculating money.

• Civil Lawsuit: It simply results in a judgment to 'pay the money'.

• Fair Trade Commission Investigation: If a violation of the Subcontracting Act is acknowledged, actions such as corrective orders, fines, and penalties will be imposed. Especially if penalties accumulate, participation in public bidding can be restricted, so from the corporate perspective, they perceive the Fair Trade Commission investigation as a much greater burden than a civil lawsuit. Therefore, utilizing this can be a strategy to expedite payment recovery.

3. Targets for reporting violations of the Subcontracting Act and benefits of delayed interest (15.5%)

If the transaction is subject to the Subcontracting Act, the following cases are all targets for reporting.

• Non-payment: When payment is not made within 60 days of receiving goods

• No provision of written documentation: When a proper contract is not provided

• Unjust price reduction: An action to reduce prices without valid reasons

It is particularly noteworthy that 'delayed interest' is a significant point. The Subcontracting Act stipulates that if payment is delayed, annual delayed interest of 15.5% must be paid. In an era of high interest rates, 15.5% is certainly not a small amount. Cheongchul helps you ensure that you recover not only the principal but also the rightful interest.

4. Solution: Fair Trade Commission report vs mediation application, what is the right choice for me?

Responses must differ depending on the situation and purpose.

• Korea Fair Trade Mediation Agency Application: Suitable when the fact of the legal violation is relatively clear, and you wish to quickly receive actual payment and compensation for damages.

• Fair Trade Commission Report: Appropriate when there is somewhat insufficient evidence of legal violations, and it is necessary to clarify the facts through an investigation. However, note that Fair Trade Commission investigations are procedures that punish legal violations for public interests, so personal damage recovery itself may not be the main purpose.

5. Conclusion: Cheongchul Law Firm protects your rights

The issue of non-payment for deliveries cannot be resolved simply by waiting. A precise legal review must precede to determine whether you can be protected under the Subcontracting Act, and which is more advantageous between reporting and mediation.

Cheongchul Law Firm presents the most efficient legal solutions according to the client's situation and stands with you to protect your valuable assets. If you are struggling with non-payment issues, please consult Cheongchul Law Firm immediately. Through professional assistance, we will help you regain your rights.

This post was created for informational purposes based on the content of the corresponding YouTube video, and we recommend that you conduct specific legal consultations directly with a lawyer.