Enforcement Of The Freelance Act

The Act on Optimization, etc., of Transactions concerning Specified Outsourcees (hereinafter referred to as the "Freelance Act") was enacted on April 28, 2023 and promulgated on May 12, 2023, and will go into effect on November 1, 2024. Prior to its enforcement, we would like to provide a summary of the main points of the Freelance Act.

The Freelance Act covers the outsourcing of transactions to freelancers by business operators (including freelancers, hereinafter referred to as "Outsourcers"). In this regard, the Freelance Act defines a freelancer as a "specified outsourcee", which means a party to whom business is outsourced that is either a sole proprietorship (without employees) or a one-person corporation (Article 2, Paragraph 1 of the Freelance Act). For ease of reading, we have used only the term "freelancer" in this summary.