Hyundai KEFICO

[Alpha Biz= Reporter Kim Jisun] Automotive engine parts manufacturer Hyundai KEFICO has been penalized by the Korea Fair Trade Commission (KFTC) for failing to issue required written documents to its subcontractors.

On October 1, the KFTC announced corrective orders, warnings, and a fine of KRW 54 million against Hyundai KEFICO for violating the Subcontracting Act. From May 2020 to May 2022, Hyundai KEFICO commissioned 16 subcontractors to manufacture molds for automotive parts.

In 110 transactions with 13 of these subcontractors, the company issued incomplete documents that lacked specific delivery dates. In some cases, Hyundai KEFICO issued the necessary documents up to 960 days after the subcontractors had already begun work.

Furthermore, despite the subcontractors delivering and passing inspection for the molds, Hyundai KEFICO delayed payments beyond the 60-day limit, failing to pay a total of KRW 247.9 million in late interest. The company has since paid the overdue interest following the KFTC investigation.

 

 

 

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