Emons Furniture Penalized for Unilaterally Canceling Subcontracting Contract and Abusing Power

Fair Trade Commission imposes corrective order and 360 million KRW in fines

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Emons Furniture, which unilaterally canceled contracts with subcontractors and failed to pay promissory note discount fees, has been sanctioned by the Fair Trade Commission.

On the 11th, the Fair Trade Commission announced that it would impose corrective orders and a fine of 360 million KRW on Emons Furniture for violating the Subcontracting Act.

According to the Fair Trade Commission, Emons Furniture commissioned the manufacturing of aluminum parts such as furniture handles to be installed at five apartment construction sites from August to November 2021, but unilaterally canceled the manufacturing commissions related to the five sites citing business deficits.

Emons Furniture also paid subcontracting fees for parts manufacturing via promissory notes but did not pay the discount fee of 32.79 million KRW on the maturity date. It was also found that they did not issue written documents detailing statutory matters such as subcontracting fees to the subcontractors.

The Fair Trade Commission decided on sanctions, viewing that Emons Furniture’s actions caused unfair damages to the subcontractors. The Commission stated, "We will strive to prevent disadvantages to subcontractors in subcontracting transactions and to establish a fair subcontracting transaction order."

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