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41-8 · Civil petitions & documents

Service and Outsourcing Contract Drafting

Depending on its actual content, a service or outsourcing contract is closer to a contract for work, where payment is made for completing a result (Civil Act Article 664), or a mandate, where the handling of affairs is entrusted (Article 680 of the same Act), and the timing of payment and the effect of early termination differ accordingly. Because either party may terminate a mandate at any time (Article 689 of the same Act), the settlement basis on termination should be written into the contract. If the transaction is a service subcontract from a principal contractor to a subcontractor under the Fair Transactions in Subcontracting Act, Article 3 of that Act requires a written document stating the subcontract price and payment method, signed or sealed by both parties, to be issued before the service work begins. If the entrusted work involves processing customers' personal information, Article 26 of the Personal Information Protection Act requires the entrustment to be made in a document covering the prohibition of processing for other purposes, protective measures, restrictions on re-entrustment and liability for damages. As this is not a document filed with a government agency, there is no processing agency or processing deadline. Hwang Yunsang Administrative Office reviews the transaction structure and drafts the service or outsourcing contract.

HWANG YUNSANG ADMINISTRATIVE OFFICESONGDO · 37.3892° N / 126.6439° E
#Service and Outsourcing Contract Drafting#Official check#41-8
🌐 How to Draft a Service Contract or Outsourcing Contract
01

Procedure

Procedure

Procedure type
  • Drafting Difficulty Low

    Work completed by drafting documents such as contracts, certified letters or statements of fact, without review by a government authority.

  1. 01

    Confirming the transaction structure: Check whether the work is delivering a completed result (contract for work) or handling affairs themselves (mandate), and whether the other party works as an independent business without direction and supervision.

  2. 02

    Checking applicable laws: If both parties are businesses and one re-entrusts services within its own line of business to another service provider, check whether the written-document duty under the Subcontracting Act applies; if customer personal information is handed over, prepare entrustment clauses for its processing.

  3. 03

    Specifying scope and schedule: State the purpose of the service, the work and deliverables, the contract period and the schedule by stage; for development services, attach the functional specification and whether source code is delivered.

  4. 04

    Payment, acceptance and additional work: Link payment timing to delivery or completion of acceptance, and set acceptance criteria, the scope of revisions, and the quotation and written agreement procedure for work outside the scope. For subcontracts, also state the method and procedure for price adjustment.

  5. 05

    Rights and liability clauses: Set ownership of intellectual property in deliverables, confidentiality, prior consent for re-entrustment, and damages and liability caps. For entrusted personal information processing, also include the purpose and scope of entrustment, security measures such as access restriction, and inspection of processing status.

  6. 06

    Termination, settlement and signing: Set grounds for early termination and the basis for settling payment for work already done, and arrange for each party to keep a copy signed or sealed by both parties.

02

Filing route

Filing route

No submission (contract between the parties)

Confirm the current filing office, jurisdiction, and online availability on the official website.

Official check
Actual processing agencyCompetent Korean authority or official service
Statutory and policy authorityCompetent Korean authority or official service
Online routeOfficial check
03

Deadlines & processing notes

Deadlines & processing notes

Check deadlines and next steps against the notice, filing date, and any request for additional documents.Official check
04

Basic documents

Basic documents

Basic documents0 / 7

If the contract is written after the service has started, a subcontract transaction breaches the written-document duty, and if scope and acceptance criteria are left blank, payment gets stuck over whether the work is complete, so signing should be finished before work begins.

Scope of services

Scope of services

Hwang Yunsang Administrative Agent Office prepares and translates documents for administrative agencies, submits them on your behalf, and guides you through permit, application, and notification procedures. Services that require the principal’s personal appearance, principal’s application, or electronic signature may be limited in delegation.