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Hankook Tire & Technology Headquarters (Photo = Hankook Tire & Technology) |
[Alpha Biz= Kim Jisun] Hankook Tire & Technology (Hankook Tire) has been sanctioned by the Korea Fair Trade Commission (KFTC) for violating agency-related laws by demanding business secrets from dealers and restricting product procurement to specific suppliers.
On Wednesday, the KFTC announced it had issued a corrective order against Hankook Tire. According to the investigation, from September 2019 to November 2023, Hankook Tire unjustifiably required its dealers to provide sales amount information. This was stipulated in contracts, compelling dealers to input their sales data into the company’s internal computer system.
Sales figures are considered business secrets, directly linked to profit margins. If the headquarters becomes aware of a dealer's profit margin, it could place the dealer at a disadvantage during future price negotiations.
Additionally, dealers under the specialized “TTS (The Tire Shop)” program were restricted to procuring supplies only from vendors designated by Hankook Tire. The contract stipulated that dealers must obtain prior approval to use other suppliers and could face partial suspension of product supply if violated. However, all Hankook Tire dealers are non-exclusive and typically have autonomy in choosing their suppliers.
The KFTC determined that Hankook Tire abused its superior bargaining position to interfere with dealers’ business operations. However, the commission decided not to impose a fine, taking into account that the company voluntarily corrected its illegal practices as of November 2024.
AlphaBIZ Kim Jisun(stockmk2020@alphabiz.co.kr)
