BUSINESS

Hyundai Motor affiliate fined for unfair business with subcontractors

By a2017001
  • Published : Jun 25, 2017 - 14:56
  • Updated : Jun 25, 2017 - 14:56

South Korea's corporate watchdog said Sunday that it has slapped 360 million won ($316,000) in fines on Hyundai Wia Corp., an auto parts affiliate of Hyundai Motor Group, for abusing its market power to control subcontractors.

Hyundai Wia is accused of "unilaterally" cutting prices during an auction with a smaller subcontractor between September 2013 and June 2016, the Fair Trade Commission said.

The FTC probe also showed that the company was involved in other unfair business practices with the subcontractor, such as unlawfully transferring costs to the smaller company.

Along with the fines, the FTC asked the state prosecutors to conduct an investigation into Hyundai Wia on allegations it forced various partners to agree to unfair business arrangements.

The watchdog said that while Hyundai Wia did rectify its actions, the damage it caused needed to be penalized.

The move comes as the FTC is stepping up efforts to crack down on unfair price cuts and other inappropriate business practices that large companies are using to twist the arms of smaller subcontractors. (Yonhap)



LEADERS CLUB