South Korea’s antitrust watchdog said Thursday that it has decided to fine Daewoo Shipbuilding & Marine Engineering Co. about 26.7 billion won ($25.1 million) for its involvement in unfair business practices with subcontractors.
DSME, a major South Korean shipbuilder, is accused of “unilaterally” cutting prices in deals with 89 smaller subcontractors for assembling, painting and other works related to manufacturing ships, according to the Fair Trade Commission.
The unfair business practices were underway from 2008-2009. For that matter, the FTC slapped 26.7 billion won in fines on DSME, which is the largest amount ever in connection with violations of the country’s subcontractor laws.
Along with the fines, the FTC ordered DSME to pay a total of 43.6 billion won to compensate for the losses that the subcontractors had to sustain due to its forceful price cuts.
The move comes as the FTC is stepping up efforts to crack down on unfair price cuts and other inappropriate business practices that market-dominating large companies are using to twist the arms of smaller subcontractors in cutting prices and maximizing their profits. (Yonhap News)
