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Hyundai Heavy fined W21b for violating subcontracting law

South Korea's antitrust regulator said Wednesday it fined Hyundai Heavy Industries Holdings Co., the nation's largest shipping conglomerate, 20.8 billion won ($17.8 million) for allegedly violating a law on subcontracting.

Hyundai Heavy is accused of forcing its subcontractors to start works without prior notification about the values of the contracts between 2014 and 2018, the Fair Trade Commission said in a statement. 


Also, Hyundai Heavy had unilaterally demanded its subcontractors cut prices by 10 percent in 2016.

The FTC criticized Hyundai Motor for concealing evidence by replacing 273 hard disk drives in October 2018, shortly before the regulator launched a probe into the shipping conglomerate.

The FTC said it referred Hyundai Heavy to prosecutors for further investigation.

The FTC has vowed to root out such unfair and unilateral business practices between big firms and their subcontractors. (Yonhap)