The Truthful Commerce Fee (FTC) has launched intensive on-site investigations into allegations of subcontracting abuse by Hanwha Aerospace and Korea Aerospace Industries (KAI), consultant firms within the home protection trade. The measure follows suspicions of abuse of energy raised over the previous three years, together with stress on companion firms to chop unit costs.
In line with the FTC and trade sources on Nov. 3, the FTC dispatched investigators to the headquarters of Hanwha Aerospace in Changwon, South Gyeongsang Province, and Korea Aerospace Industries (KAI) in Sacheon, South Gyeongsang Province, on the identical day to conduct on-site investigations on suspicions of violating the Subcontracting Act.
The 2 firms are suspected of so-called “abuse of energy” over the previous three years of their dealings with subcontracting firms, together with worth cuts, expertise misappropriation, and unpaid funds. Claims have been raised from inside and outdoors the trade that main protection firms have publicly engaged in excessively demanding value reductions from companion firms throughout provide worth negotiations or stealing expertise by bypassing suppliers after receiving manufacturing expertise knowledge.
The FTC plans to think about measures resembling corrective orders, penalties, and accusations based mostly on future investigation outcomes. An FTC official mentioned, “It’s troublesome to discuss particular investigation particulars,” however added, “If violations of the legislation are confirmed, we plan to impose strict sanctions.”
