First Consent Decision on Technology Misappropriation: Hyosung Heavy Industries to Provide 3.4 Billion Won Mutual Growth Support to Partners

First Consent Decision Case for Technology Misappropriation

Support Package Worth 3.4 Billion Won: 1.1 Billion for Technical Assistance, 1.6 Billion for Equipment Purchases

Regarding Hyosung Heavy Industries' actions of requesting technical drawings from partner companies without a legitimate reason and using them at their own discretion, the Korea Fair Trade Commission has finalized a consent decision that includes a 3.4 billion won mutual growth support plan. This is the first case in which the consent decision system, introduced under the Subcontracting Act in 2022, has been applied to acts of technology misappropriation.

Hyosung Heavy Industries Attended the 2025 Climate Industry International Expo. The Asia Business Daily DB.

On March 4, the Korea Fair Trade Commission announced that it has finalized the consent decision related to violations of the Subcontracting Act by Hyosung and Hyosung Heavy Industries. This case involved Hyosung Heavy Industries requesting technical data such as component drawings from subcontractors in the process of outsourcing the manufacturing of power generation and drive equipment, and then preparing, registering, and managing documents identical to those provided. The commission had been reviewing the illegality of these actions; however, the procedure was switched to a consent decision after Hyosung voluntarily prepared corrective measures and applied for the process.

Koo Seongrim, Director of the Technology Misappropriation Investigation Division at the Korea Fair Trade Commission, explained, "Since the technical data did not reach the stage of being actually used for manufacturing components, we determined that the illegality was not serious or clear. Rather than imposing fines that would be reverted to the national treasury, we considered the consent decision—which provides tangible benefits to subcontractors—to be more effective, and initiated the process in May of last year."

Under the finalized consent decision, Hyosung and Hyosung Heavy Industries will completely overhaul their management system to prevent any recurrence of technical data misappropriation. From now on, technical data from subcontractors can only be used for advance approval or post-inspection purposes, and any requests for data without legitimate reasons or discretionary preparation of identical drawings must cease immediately. In addition, the companies will establish an internal system with self-inspection functions for technical data, and regularly report the results of internal audits to the Korea Fair Trade Commission.

The total mutual growth support funds to be provided to partner companies amount to 3,429.6 million won. This figure exceeds the highest fine ever imposed in a technology misappropriation case, which was about 2.6 billion won. Specifically, 1,129.6 million won will be allocated to support the development of new molds for aging equipment and the reduction of component weight for subcontractors affected by technology misappropriation. Additionally, 1,640 million won will be provided to improve productivity through equipment purchases, and 660 million won will be used to install portable air conditioners, expand rest facilities, and purchase safety equipment for on-site workers.

After gathering opinions from 12 major subcontractors, the Korea Fair Trade Commission found that all companies expressed strong satisfaction with the support plan, as it is more helpful in practice than legal sanctions. The commission stated, "We expect this decision to become a new model of mutual cooperation that fundamentally improves the practice of technology misappropriation and promptly provides relief to subcontractors."

This content was produced with the assistance of AI translation services.