The effectiveness of a data submission order issued by the Fair Trade Commission (FTC) against Hanwha Group has been suspended by a court ruling. Hanwha initiated legal action, claiming procedural issues regarding the review and retention of personal cell phones during the FTC's investigation.
On September 9, the Administrative Division 7 of the Seoul High Court granted Hanwha and an employee, referred to as A, a suspension of the data submission order. As a result, the order will remain inactive until January 31, 2027.
This case stems from an FTC field investigation conducted from late June to early July, which examined whether there were unfair internal transactions related to brand (trademark) usage fees among Hanwha Group affiliates.
Hanwha alleges that during the investigation, the FTC accessed employee A's personal text messages without a warrant and issued a related data submission order. The company contends that the FTC exceeded its authority by directly examining the employee's personal phone without having obtained a search warrant.
The retention of the phone is also a point of contention. Hanwha claims that the FTC investigators kept A's phone in a separate location for about 30 hours but did not provide a proper retention record during this time.
Hanwha further asserts that the investigation involved coercive tactics, including recording statements without A's consent. A has reportedly experienced mental distress following the investigation and is currently on leave.
Hanwha and A believe that the data submission order, based on materials obtained through these methods, is also unlawful. They have communicated to the court that the FTC, as an agency that conducts both investigations and sanctions, requires judicial oversight to prevent excessive exercise of investigative authority during field investigations.
The court's decision to suspend the order indicates that the procedural issues raised by Hanwha will be addressed in the main lawsuit. However, the suspension does not constitute a final judgment on the legality of the data submission order; it is a temporary measure until a ruling is made in the main case.
Hanwha and A have also filed a lawsuit seeking the cancellation of the FTC's data submission order, with the first hearing scheduled for October 29.
The FTC has denied Hanwha's claims, asserting that the field investigation was conducted in accordance with legal procedures and that the phone was examined with the consent of A and the company's legal representative. The FTC also refutes allegations of coercive investigation tactics.
Hanwha stated, "We will fully cooperate with the FTC's investigation, which is being conducted lawfully."
* This article has been translated by AI.
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