The Honest Commerce Fee has detected allegations of ‘abuse of energy’ by Hyundai Rotem towards its subcontracting firms and launched an investigation.
In line with authorities businesses and different sources on Dec. 10 the FTC despatched investigators to Hyundai Rotem’s headquarters situated in Uiwang-si, Gyeonggi-do final week to conduct an on-site investigation.
Hyundai Rotem is alleged to have demanded technical information from subcontracting firms and misappropriated it, in addition to participating in non-payment and delays of subcontract funds and demanding unfair unit worth reductions.
This investigation is reported to be a part of President Lee Jae-myung’s coverage initiative to “eradicate abuse of energy within the protection trade sector.”
Beforehand, President Lee warned at a protection trade improvement discussion board in October, stating, “As taxpayer cash is invested within the protection trade, firms must be involved about revitalizing the economic ecosystem,” and “We’ll develop FTC personnel and impose deadly disadvantages for abuse of market-dominant positions resembling cost-cutting practices.”
