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[Alpha Biz= Kim Jisun] The Korea Fair Trade Commission (KFTC) has launched disciplinary proceedings against Doosan and DB Inc. for alleged violations of the Subcontracting Act related to their system integration (SI) operations.



According to industry sources on July 15, the KFTC recently issued investigation reports to both companies, recommending formal sanctions. The two firms, responsible for developing and managing internal IT systems within their respective business groups, are accused of subcontracting software development tasks to small and medium-sized enterprises (SMEs) without formal written contracts and failing to make timely payments.



The investigation also found KT DS, a subsidiary of KT Corporation, in violation of subcontracting rules for delays in communicating inspection results beyond the statutory 10-day deadline. However, KT DS was issued only a summary corrective order due to the relatively minor nature of the infraction.



The KFTC's actions underscore its ongoing efforts to ensure fair subcontracting practices and protect the rights of SMEs in Korea’s IT and software development sectors.
 

 

 

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