World’s Largest Shipbuilders Fined for 970m Trade Deal

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  • Hyundai Heavy fined 970 mln won for unfair trade with its subcontractors, the country’s antitrust watchdog according to the antitrust watchdog of the country.
  • This has been the biggest-ever fine levied for acts of misusing technologies from other companies.
  • Fair Trade Commission (FTC) said that Hyundai Heavy has stolen technologies used in the production of pistons that are mounted on ship diesel engines from its subcontractor.
  • It also secretly shared the technology with another subcontractor to reduce the price of products supplied by its original subcontractor.

A recent news published in Yonhap News Agency reveals the trade violations performed by Hyundai Heavy in the year 2016.  Therefore, the company was slapped with a fine of 970 mln won.

Unethical act

After stealing the technologies used in the production of pistons, Hyundai Heavy reduced the pistons’ prices by transferring the technologies to another subcontractor in 2016.

Immediately Hyundai Heavy stopped trading with its primary subcontractor after one year, says FTC.

Original subcontractor lose business

The sales of the original subcontractor fell 57 percent three months after Hyundai Heavy’s demand to cut prices of pistons, with its operating profit tumbling nearly seven fold.

Reporting to police

The original subcontractor filed a complaint about the unfair trade by Hyundai Heavy in police and the country’s antitrust watchdog.

“We respect FTC’s judgment, but it is somewhat different from our stance. We will try to bridge the gap after reviewing the FTC statement,” an official at Hyundai Heavy said.

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Source: Yonhap News Agency

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