[Alpha Biz= Paul Lee] Seoul, September 22, 2025 – The Korea Fair Trade Commission (KFTC) has imposed the first-ever penalties for violations of the subcontract price adjustment system, fining Hanil Cement (which merged with Hanil Hyundai Cement), along with Simmons and Sidiz, KRW 5 million each.
The subcontract price adjustment system requires automatic adjustments to subcontract payments when the cost of key raw materials rises or falls by a certain percentage.
According to the KFTC, Hanil Cement subcontracted cement packaging production but failed to include provisions related to the adjustment system in its contract. Similarly, Simmons and Sidiz were found to have omitted such clauses.
The KFTC stated: “This measure is expected to help protect the rights and interests of small and medium-sized subcontractors, who are often in weaker positions in business transactions.”
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
