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Photo = Fair Trade Commission (KFTC) |
[Alpha Biz= Paul Lee] The Fair Trade Commission (KFTC) has decided to reopen its investigation into Hanwha's alleged abuse of power in dealings with its industrial explosives dealerships.
According to industry sources on Tuesday, the KFTC decided last month to revisit the claims of Hanwha obstructing business activities.
Earlier, in 2023, the KFTC received a report from a dealership accusing Hanwha of engaging in unfair practices. The accusations included Hanwha setting the resale prices for explosives, a right that should have been determined by the dealerships, and interfering in management by placing former employees in dealership leadership positions, where they were given authority over terms of employment, including salaries and tenure.
The domestic industrial explosives market is primarily controlled by Hanwha and a few other companies, such as Korea Nobel Chemicals, creating a duopoly that leaves dealerships vulnerable to the influence of suppliers.
However, the KFTC initially concluded in January last year that these allegations were unfounded and dismissed the case.
In response, the complainant submitted additional evidence and filed a new report. This new evidence includes internal documents outlining the terms of employment, such as the tenure and salaries of dealership representatives.
As a result, the KFTC’s "Re-filed Case Review Committee," consisting of both permanent and external members, will reassess the case based on the new evidence and proceed with a reinvestigation.
Industry sources suggest that this case stems from a sense of urgency felt by dealerships after Hanwha introduced a direct sales policy in 2022, bypassing dealerships. This led dealerships to gather examples of alleged abuse of power and file the complaint.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
