According to industry sources on June 24, the FTC began sending investigators to major affiliates of Hanwha Group, including its effective holding company Hanwha, Hanwha Solutions, Hanwha General Insurance, and Hanwha Life Insurance, to gather relevant documents starting June 23. The investigation is expected to last for one week.
The FTC is reportedly examining the appropriateness of the brand licensing fees that Hanwha's affiliates have been paying annually under licensing agreements with Hanwha. Currently, these affiliates calculate the fees based on a certain rate applied to their revenue, excluding advertising costs.
The commission is scrutinizing whether this fee calculation method accurately reflects the characteristics of each affiliate's industry and the actual business benefits derived from brand usage. If excessive fees have been set without proper valuation, this could indicate unfair support through the affiliates or preferential treatment for related parties.
Charging affiliates for the use of trademarks is generally classified as a standard business practice. However, due to the difficulty in objectively assessing the value of trademarks, concerns have been raised that this could serve as a means to transfer profits to the holding company, in which the founding family's ownership stake is significant.
* This article has been translated by AI.
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