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

Government construction contracts: contracting authority must pay within 5 working days of payment request (3 days during national economic crises). Legal basis: Article 58, Enforcement Decree of the Act on Contracts to Which the State is a Party. Applies to public contracts only; no equivalent private-sector deadline.

Government Construction
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Interest Rate

Article 54 of the Commercial Act currently sets the statutory interest rate for commercial transactions at 6%. However, amendments to the Civil Act passed Cabinet in December 2025, replacing the fixed rate system (5% civil, 6% commercial) with a variable rate that can be adjusted by presidential decree based on economic conditions. This is the first comprehensive revision since the Civil Act was enacted in 1958.

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