The Act provides that the payment date for the price of the delivered goods by a commissioning enterprise to a commissioned enterprise shall be the shortest period of not more than 60 days from the date on which the commissioning enterprise receives the goods, etc.; and that when the payment date is set in violation of this provision, the date on which 60 days lapse from the date on which the goods, etc. are received shall be deemed the date on which it is agreed to pay the price of the goods, etc.

However, commissioned enterprises that are generally petty and small relative to commissioning enterprises may face difficulties in business operation such as liquidity crisis due to deterioration of financial conditions if payment for delivered goods is not made in 60 days.
Hence, the Amendment curtails the payment due date for delivered goods that is currently required to fall “no later than 60 days” from the date of receipt of goods, etc. to “no later than 15 days” from the date of receipt of good, etc. for speedier payment, thereby aiming to ensure that business of commissioned enterprises runs smoothly (Article 22, paragraphs 1 through 3).

Note

Since the Amendment is subject to passage of the partial amendment bill to the Fair Transactions in Subcontracting Act, proposed solely by Member of National Assembly Member Jeon Jae-soo (Bill no. 22004), in the event that the bill is not passed or passed with modification, it should be adjusted accordingly as well.

Payment, etc. of Price of Delivered Goods (Article 22)