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Photo = Yonhap News Agency |
[Alpha Biz= Ellie Kim] Kyungdong Navien has been sanctioned by the Fair Trade Commission for violations of subcontracting regulations related to improperly executed price agreements.
On June 14, the Fair Trade Commission announced that it has imposed corrective orders and a fine of ₩52 million on Kyungdong Navien for breaching the Subcontracting Act.
According to the regulator, the company outsourced the manufacturing of household heating components—including ignition transformers, heating supply pipes, and temperature sensors—to 98 subcontractors between June 2021 and June 2024.
During this process, a total of 436 unit price agreements were found to be improperly issued, either lacking official company seals or signed by employees without proper authority.
Unit price agreements are key documents in subcontracting transactions that define supply pricing. Under the Subcontracting Act, such agreements must include signatures or registered seals from both contracting parties.
The Fair Trade Commission stated that it will also pursue improvements to the relevant system to ensure that penalties are more appropriately aligned with the severity of violations.
Alphabiz Ellie Kim 인턴기자(press@alphabiz.co.kr)
