The Korea Fair Trade Commission at the Government Complex in Sejong City. [Photo by Yoo Dae-gil, dbeorlf123@ajunews.com]
A South Korean auto-parts maker has been sanctioned for issuing required subcontract documents late to its subcontractors.
The Korea Fair Trade Commission said May 5 it will fine SL 38 million won for delaying written documents when outsourcing mold manufacturing to subcontractors. SL is a first-tier supplier to Hyundai Motor Co., providing automotive lamps and electronic parts.
According to the commission, SL outsourced 328 cases of mold production for auto-parts manufacturing from May 2020 to May 2023, but issued subcontract-related documents only after work had begun, with delays ranging from at least eight days to as long as 605 days.
The commission also said SL failed to pay 728,894,000 won in late-payment interest and promissory note discount fees across 342 contracts, even though more than 60 days had passed since the delivery date. The unpaid amounts included 509,651,000 won in late interest and 219,243,000 won in note discount fees.
For violating its obligation to issue written documents, the commission ordered SL to prevent a recurrence and imposed the 38 million won fine. It issued a warning over the unpaid interest and discount fees, citing SL’s voluntary corrective action.
A commission official said it will continue to address unfair trade practices that harm subcontractors’ rights and will impose strict penalties when violations are found to help establish fair subcontracting practices.
The Korea Fair Trade Commission said May 5 it will fine SL 38 million won for delaying written documents when outsourcing mold manufacturing to subcontractors. SL is a first-tier supplier to Hyundai Motor Co., providing automotive lamps and electronic parts.
According to the commission, SL outsourced 328 cases of mold production for auto-parts manufacturing from May 2020 to May 2023, but issued subcontract-related documents only after work had begun, with delays ranging from at least eight days to as long as 605 days.
The commission also said SL failed to pay 728,894,000 won in late-payment interest and promissory note discount fees across 342 contracts, even though more than 60 days had passed since the delivery date. The unpaid amounts included 509,651,000 won in late interest and 219,243,000 won in note discount fees.
For violating its obligation to issue written documents, the commission ordered SL to prevent a recurrence and imposed the 38 million won fine. It issued a warning over the unpaid interest and discount fees, citing SL’s voluntary corrective action.
A commission official said it will continue to address unfair trade practices that harm subcontractors’ rights and will impose strict penalties when violations are found to help establish fair subcontracting practices.
* This article has been translated by AI.
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