Fair Trade Commission "Dongwoo Control, Nonpayment of Subcontracting Fees... Order to Prevent Recurrence and Pay Delayed Interest"

[Sejong=Asia Economy Reporter Joo Sang-don] The Fair Trade Commission announced on the 29th that it issued a recurrence prevention order and a payment order of 10.74 million KRW in delayed interest to Dongwoo Control for failing to pay subcontracting fees on time.

According to the Fair Trade Commission, Dongwoo Control entrusted subcontractors with the manufacturing of electronic components such as printed circuit boards, and after receiving the goods, it did not pay 81.75 million KRW in subcontracting fees, citing the reason that the subcontractors did not return the raw materials they provided. Dongwoo Control paid 57.14 million KRW of the unpaid subcontracting fees by depositing it in court in January this year, and the remaining 24.61 million KRW was offset against the unpaid subcontracting fees as the court recognized it as an amount equivalent to the subcontractors' unreturned raw materials.

In addition, Dongwoo Control delayed payment of subcontracting fees to the subcontractors beyond 60 days (the statutory payment deadline) from the date of receipt of the goods and failed to pay a total of 10.74 million KRW in delayed interest for the overdue period.

The Fair Trade Commission stated, "This action is significant in that it penalized the principal company for not paying subcontracting fees for a long period, delaying payment, and failing to pay delayed interest," and added, "The Fair Trade Commission will continue to monitor whether principal companies comply with the Subcontracting Act to ensure that subcontractors, who are relatively disadvantaged, do not suffer unfair disadvantages."

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