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Hanon Systems. (Photo: Hanon Systems) |
[Alpha Biz= Kim Jisun] Hanon Systems said it will pursue legal action against the Fair Trade Commission’s decision to impose corrective measures and a fine of 1.407 billion won for alleged violations of South Korea’s subcontracting law.
In a statement issued on March 2, the company said it had cooperated fully with the investigation and had already implemented proactive improvements to its internal compliance systems. However, it argued that the FTC’s interpretation of the “date of receipt” for molds—central to the case—does not adequately reflect the unique characteristics and established practices of the automotive parts and mold industries.
Hanon Systems said it will seek judicial review to establish more reasonable and industry-aligned legal standards, aiming to enhance legal predictability across the sector while supporting both fair trade and operational efficiency.
The FTC earlier said it had found that Hanon Systems violated the Fair Transactions in Subcontracting Act by failing to issue required written contracts specifying payment terms and scope of work before subcontractors began mold manufacturing between May 2020 and May 2023.
The regulator also cited the company for failing to issue delivery receipts, neglecting to notify subcontractors of inspection results within the legally required timeframe, and not paying alternative bill settlement fees of about 95 million won as well as delayed interest totaling approximately 1.39 billion won.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
