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South Korea: Watchdog rejects Hyundai’s remedies

By  |  November 26, 2017

South Korea’s antitrust watchdog has rejected a commitment agreement request by Hyundai Mobis Co., the country’s largest auto parts maker, citing inadequate remedy proposals to make up for damage caused by its abuse of market power.

The company has been under investigation by the Korean Fair Trade Commission (KFTC) for forcing its dealerships to meet unreasonable sales targets between January 2010 and November 2013, according to the watchdog.

In a commitment request filed in June, Hyundai Mobis said it will compensate the dealerships and create a fund worth 10 billion won (US$8.87 million) to help them. But the KFTC turned it down and ordered the company to file an improved proposal.

A commitment decision is a process in which the KFTC can finalize a case swiftly without making any determinations on illegality if the companies under investigation voluntarily come up with reasonable corrective measures.

However, the KFTC dismissed the second suggestion by Hyundai Mobis, saying that its remedial actions are insufficient.

Full Content: Mena Fn

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