KFTC Conducts On-Site Investigations into LIG Nex1 and Hyundai Rotem Over Alleged Unfair Subcontracting Practices

Reporter Kim Jisun / approved : 2025-12-10 03:32:57
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[Alpha Biz= Kim Jisun] SEOUL, Dec. 9 — The Korea Fair Trade Commission (KFTC) has carried out consecutive on-site investigations into major defense contractors LIG Nex1 and Hyundai Rotem as part of its efforts to eradicate unfair subcontracting practices in the defense industry.

According to industry sources, the KFTC dispatched investigators to LIG Nex1’s headquarters today to look into allegations of misappropriation of technical data and unfair price reductions imposed on subcontractors.

Last week, the Commission also conducted an on-site probe at Hyundai Rotem’s headquarters, examining similar allegations, including unauthorized use of suppliers’ technical documents and delayed payment of subcontracting fees.

The KFTC recently launched investigations into Hanwha Aerospace and Korea Aerospace Industries (KAI) as well, effectively initiating probes into all four major defense contractors—collectively referred to as the industry’s “Big Four.”

These actions are widely viewed as a response to President Lee Jae-myung’s recent directive underscoring the need to eliminate unfair subcontracting practices within the defense sector.

 

 

Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)

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