Fair Trade Commission Imposes Fine on 'Teragen Tech' for Non-Payment of Subcontracting Fees
The Fair Trade Commission announced on the 16th that it has decided to issue a payment order, a future recurrence prevention order, and impose a fine of 16 million KRW on Teragen Tech, an LCD equipment company, for failing to pay subcontracting fees.
According to the Fair Trade Commission, Teragen Tech commissioned subcontractors to manufacture machinery and equipment and received the products but did not pay approximately 18 million KRW in subcontracting fees. When paying the subcontracting fees by promissory note, it did not pay the discount fee of 7.6 million KRW. Additionally, when commissioning the assembly and manufacturing of display machinery and equipment, it either did not issue a written contract specifying payment procedures and delivery dates or omitted signatures or seals.
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The Fair Trade Commission stated, "When the primary contractor commissions manufacturing, etc., they must include the legally required items and issue a written document signed or sealed by both the primary contractor and the subcontractor before starting work, and must pay the subcontracting fees within 60 days from the date of receipt of the goods."
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