Payment Terms Legislation In Korea, South

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Korea, South

Please scroll down for a summary of payment terms in South Korea and the various industries across which payment term legislation appears.

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Industries Laws Codes Notes Interest Rate
Government
Comm_terms_law
Construction
Manufacturing
Retail_agriculture
Services

Laws

The Ministry of Strategy and Finance General Conditions of a Construction Contract with state entities requires construction subcontractors to submit invoices every 30 days with payment within 5 days of compliance sign-off. In some cases, depending on the size of the contract, various advanced payments are set out in the law.

Government Construction
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Interest Rate

Article 54 of the Commercial Law sets the statutory interest rate for commercial transactions at 6%.

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