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Samsung fined (again) for unfair irregular subcontracting

By  |  May 23, 2012

The Fair Trade Commission has fined Samsung 1.6 billion won (approximately $1.4 million) for unfair subcontracting. Samsung had been fined 11.5 billion won in 2008 for the same offense. According to the KFTC, Samsung withdrew orders from suppliers on an irregular basis, causing the suppliers to absorb the losses and shifts in inventory. The antitrust regulator has identified 151 suppliers that were affected by Samsung’s practices. In response, Samsung says that the KFTC did not take into consideration the demands of the IT market and the need for frequent changes in manufacturing plans.

Full content: Korea Herald

 

Related content: Using Competition Policy to Promote “Shared Growth” in Korea (Seonghoon Jeon, Korean Fair Trade Commission)

 

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