BUSINESS

Daewoo Shipbuilding fined $9.6 m for violating subcontract law

By Yonhap
  • Published : Dec 26, 2018 - 15:23
  • Updated : Dec 26, 2018 - 15:23

South Korea's antitrust watchdog said Wednesday that it has fined Daewoo Shipbuilding & Marine Engineering Co. 10.8 billion won ($9.6 million) for violating laws on subcontracting as it referred the company to prosecutors for further investigation.

The world's second-biggest shipbuilder by sales is accused of not having delivered contract documents to 27 subcontractors before they began their work, the Fair Trade Commission said.


(Yonhap)

The FTC also said Daewoo Shipbuilding unilaterally lowered preset contract prices to the subcontractors between 2013 and 2016.

The watchdog has launched similar probes into Hyundai Heavy Industries Co., the world's largest shipbuilder by sales, and Samsung Heavy Industries Co., the world's third-biggest shipbuilder by sales.

"We will sternly deal with any acts that violate the law," Kim Sang-jo, chairman of the Fair Trade Commission, said in a meeting on the issue of subcontracting at the National Assembly in western Seoul. He also promised to quickly end probes into the shipbuilders and take follow-up measures. (Yonhap)



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